Back pay and liquidated damages recovered under the Age Discrimination in Employment Act as remedies are subjected to:
A)wealth tax.
B)gift tax.
C)income tax.
D)property tax.

Question

Quizplus · Accepted Answer

Back pay and liquidated damages recovered under the Age Discrimination in Employment Act are considered income and are therefore subject to income tax. These types of recoveries compensate for lost wages and other damages, which the IRS treats as taxable income.

Back Pay and Liquidated Damages Recovered Under the Age Discrimination