Statutory Guidelines [Appendix A(2) Tres. Reg 104-1] regarding compensation for injuries or sickness under workmen's compensation acts, damages, accident or health insurance, etc. as stated in the guidelines.
Statutory Guidelines [Appendix A(2) Tres. Reg 104-1] regarding compensation for injuries or sickness under workmen's compensation acts, damages, accident or health insurance, etc. as stated in the guidelines.
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Compensatory Damages ? This includes things like pain and suffering, economic losses, lost earnings, property damages, and more. Within Compensatory Damages there are even MORE categories. Punitive Damages ? These are Damages that are essentially enacted to keep the defendant from repeating his or her crime.
There are three types of damage that form the foundation of most civil lawsuits: compensatory, nominal, and punitive.
There are two separate types of compensatory damages: ?general damages? and ?special damages.? General damages are the non-economic damages, commonly referred to as pain and suffering. Special Damages are economic damages, the medical bills, the lost earnings, all out-of-pocket expenses incurred because of the injury.
Section 1.104-1(d) states that if an individual purchases a policy of accident or health insurance out of his own funds, amounts received thereunder for personal injuries or sickness are excludable from his gross income under ' 104(a)(3).
Special damages compensation could cover: Short-term medical expenses ? Short-term medical expenses might include doctor's consultation fees, hospital charges, and all other expenses related to prescription medication, diagnostic tests, and hospital stays.
Sec. 104(a)(2) states that damages awarded as part of a settlement or judgment can be excluded from gross income if they are ?on account of personal physical injuries or physical sickness.? Emotional distress is not itself treated as a personal physical injury or physical sickness for this purpose under Sec. 104(a).
(b) Amounts received under workmen's compensation acts. Section 104(a)(1) excludes from gross income amounts which are received by an employee under a workmen's compensation act (such as the Longshoremen's and Harbor Workers' Compensation Act, 33 U.S.C., c.