IRS Will Tax BP Payments For Lost Wages

[falcon]

WTG Obama bunch.

http://news.yahoo.com/s/ap/20100625/...il_spill_taxes

WASHINGTON – The Internal Revenue Service says oil spill victims who receive BP payments for lost wages will have to pay up come tax time.

[nodog]

they are wages. wages are taxed.

[falcon]

It is not wages. Rather it is partial compensation for lost wages: Big difference.

[Fieldmouse]

I got to go with nodog, they are wages. Besides, they will only end up paying payroll most likely in the long run. Many here claim is required because American's are too stupid to save for retirement. Didn't you take that position falcon when I have called for the elimination of payroll taxes?

[nodog]

Originally Posted by falcon

It is not wages. Rather it is partial compensation for lost wages: Big difference.

Then it sounds like there are deductions. I'm fairly certain, a form must be filed if not several stating the claim.

It's a very good thing these people are being told upfront. I wonder when the state and local government will give their views on it.

[Alsatian]

I'm with nodog, also. Even if they are diminished "wages," they are wages. I assume they will be taxed based on these diminished wages -- that is, on their total income over the year. I'm in support of this. Why should their income be free from taxes?