Age discrimination and injury to reputation are NOT physical injury or sickness 2. Punitive damages awarded in a wrongful death action are excludable if applicable state law provides for only punitive damages in such actions. If purchased by taxpayer, exclude. If purchased by employer, generally must include. Employer-paid premiums for health, accident, disability insurance are deductible business expenses for employer and are excluded from employee gross income.
Health insurance benefits a.
Life insurance premiums a. If discriminatory, those who receive discriminatory benefit lose all of exclusion. Must be in same line of business 3. Athletic facilities C. Employee Achievement Awards a. Generally, entertaining subordinates and co-workers is a personal, nondeductible expense unless reimbursed by employer.