Jason was diagnosed with fibromyalgia three years ago. Because stress increases the symptoms, he left his public

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Jason was diagnosed with fibromyalgia three years ago. Because stress increases the symptoms, he left his public accounting job to become an accountant at a manufacturing firm. His symptoms subsided substantially after this move. Then last year, the firm hired a new accounts manager, Sheila, who was very high strung and demanding. Worse yet, Jason uncovers that Sheila is double billing customers that she thinks will not notice. All of this causes Jason terrible stress, and his fibromyalgia flares up such that his doctor insists he take a leave of absence. Sheila fires Jason, and Jason sues the firm. When the settlement payment is made for wrongful discharge, Jason receives back wages, attorney fees, and $ 50,000 identified as nonemployee compensation. Can Jason exclude the $ 50,000 as a payment for physical pain and suffering? What if instead of fibromyalgia, Jason’s affliction were depression and after termination, he suffered insomnia, migraines, nausea, and weight gain?
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Federal Tax Research

ISBN: 9781285439396

10th Edition

Authors: Roby Sawyers, William Raabe, Gerald Whittenburg, Steven Gill

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