Personal Taxes

Sick pay is considered taxable wages.

Worker's Compensation for job- related illness or injury is non-taxable.
The Worker's Compensation payments must be made under the authority of a law or regulation that provides compensation for on-the-job illness or injury.
Checks paid under a labor agreement do not qualify as non-taxable Worker's Compensation. If your employer continues to pay your wages while you receive Worker's Compensation and also requires that you turn over the Worker's Compensation payments, then you are taxed on the difference between what was paid to you and what was returned.

No. Sick leave payments for NYC line-of-duty injuries are non-taxable.

Legal damages or compensation awarded on account of a physical injury or physical sickness such as in an auto accident, are non-taxable.
Awards for emotional distress attributable to a physical injury or sickness are also non-taxable.
Generally, punitive damages are taxable even if they relate to a physical injury or sickness. Speak to your local CPA about the taxability of the award you received.

Income averaging is only available for farmers or Fisherman. Farmers are individuals, partnerships, corporations or syndicates that cultivate land, or raise or harvest any agricultural or horticultural commodity either as owners or tenants. A farmer may elect to average the current year's income over the three prior years using IRS Schedule J. Income averaging may not be elected by estates or trusts. Speak to your local CPA if you are a farmer or fisherman who is considering income averaging as a tax strategy.

NO. A Publically Traded Partnership whose interests are traded on an established securities market. Passive activity losses from a Publically Traded Partnership can only be used to offset income or gain from passive activities of that same Publically Traded Partnership. The losses cannot be used to offset income of other entities.

In most cases NO. The Taxpayer Relief Act of 1997 changed the law for the alternative minimum tax due for corporations. For entities whose tax year began after 12/31/97, a "Small Corporation Exemption" was created. A corporation is treated as a small corporation exempt from AMT for its tax year beginning in 1999 if that year is the corporation's first tax year in existence or its average annual gross receipts for the 3 year tax period ending before 1999 did not exceed $7.5 million (5 million if the corporation had only 1 prior tax year). You should speak to your local CPA about the "Small Corporation Exemption" and special rules that apply in determining gross receipts.

NO. Funeral expenses, including the funeral, burial or cremation costs, are deductible on the decedent's federal estate tax return, Form 706.

No. Rent payments are not deductible for Federal purposes. Some states allow a deduction or credit for rent paid. Speak to your local CPA for a possible deduction or credit on your state tax return.