Personal injury victims must now pay taxes on damages for emotional distress and loss of reputation.

The U.S. Constitution provides that victims of personal injury are not required to pay incomes taxes on compensation they may receive for their injuries and damages. Specifically, the 16th Amendment of our Constitution bars such taxation for nonphysical personal injuries.

Despite this fact and an earlier unanimous three-judge appellate court ruling which confirmed the 16th Amendment protection, the U.S. Supreme Court on Monday let stand a lower court's ruling that personal injury plaintiffs DO have to pay taxes on compensatory damages for emotional distress or loss of reputation.

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