Question

Describe how taxiation of lost wages damages affects how one calculates but-for wages and actual wages.

Answer 1

A Wages is monetary compensation  is paid by employer to an employee in against of work.

wages are part of the expenses that are involved in running a business

Compensatory Damages. Compensatory damages are designed to do exactly as the name implies, compensate a personal injury victim for actual losses suffered. .........Special damages are customarily easy to determine, and include: Lost wages or income.

calculat of lost wages:- Take the amount of your hourly wage and multiply it by the number of hours you missed due to the accident

lost wages is taxable or not :- if you receive a settlement for personal physical injuries or physical sickness and did not take an itemized deduction for medical expenses related to the injury or sickness in prior years, the full amount is non-taxable. Do not include thesettlement proceeds in your income.