The Court of Appeals for the District of Columbia ruled that compensation for a nonphysical personal injury is not income under the Sixteenth Amendment if, as in the Marrita Murphy case, the award is unrelated to lost wages or earnings. In Murphy, the award was for emotional injuries and damages to professional reputation.

If you received an award for emotional injuries or damages to professional reputation during the past three years, you probably paid taxes on that award. Now, because of ... Log in to view full article.