Christie sued her former employer for a back injury she suffered on the job in 2019. As a result of the injury , she was partially disabled. In 2020, she received $240,000 for her loss of future income, $160,000 in punitive damages because of the employer's flagrant disregard for the employee's safety, and $15,000 for medical expenses. The medical expenses were deducted on here 2019 return, reducing taxable income by $12,000. What's Christie's gross income in 2020 under new tax laws?

A) $175,000
B) $172,000
C) 415,000
D) 255,000
E) $412,000

Answer rating: 100% (QA)

Punitive damages certainly are taxed Thus Christie must include in g... View the full answer