Damages received by a spouse for loss of companionship are nontaxable, IRS privately rules. A woman’s husband suffered serious permanent injuries when he was struck by a car. The couple sued the driver’s employer, and a court awarded damages to the wife for past and future loss of consortium. Since the funds she received were directly attributable to her husband’s injuries, they are tax-free.

Damages that are Nontaxable

by | Mar 4, 2021 | IRS, TallyTaxMan | 0 comments