To help you make sure you don’t miss any important 2023 deadlines, we’ve provided this summary of when various tax-related forms, payments, and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance meeting them.
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Generally, amounts received for nonpersonal injuries are included in gross income. Punitive damages are also generally included in gross income, with a limited exception for certain wrongful death actions.
However, Section 104(a) of the Internal Revenue Code (IRC) generally excludes amounts received as compensation for personal physical injury or physical sickness from gross income. This exclusion applies to a variety of payments, including those received under workmen’s compensation acts, certain accident or health insurance, pensions or annuities for injuries or sickness resulting from active military service, compensation for the death or disability of a public safety officer, disability income due to injuries from terrorist or military actions, and damages (other than punitive damages) received for personal physical injuries or physical sickness.
Topel Forman is thrilled to announce our inclusion once again in the 2024 INSIDE Public Accounting (IPA) Top 200 Firms
Join us to learn the essential rules and requirements for documenting charitable contributions, helping you maximize deductions while staying compliant with IRS regulations.