Tax Court Holds Damages From Political Discrimination Taxable

Thelma Ruffin and others sued the City of Chicago for repeatedly turning down their job applications.  She joined a class action and eventually received a $12,500 settlement. In Ruffin v. Commissioner, the Tax Court stated thee only way a payment can be excluded from income is if it is made for physical injuries or physical sickness.  

For full article See Forbes- Political Discrim. Taxable