PJC Malpractice 2024

PJC 84.2

E CONOMIC D AMAGES

PJC 84.2

Economic Damages—Instruction on Whether Compensatory Damages Are Subject to Income Taxes

You are instructed that any monetary recovery for [ list each element of eco nomic or noneconomic damages that is subject to taxation ] is subject to [ fed eral or state ] income taxes. Any recovery for [ list each element of economic or noneconomic damages that is not subject to taxation ] is not subject to [ federal or state ] income taxes. COMMENT When to use. PJC 84.2 should be submitted with the damages question in any action in which a claimant seeks recovery for loss of earnings, loss of earning capacity, loss of contributions of a pecuniary value, or loss of inheritance. Whether an element of damages is taxable depends on the substantive tax law pertaining to each cause of action. Source of instruction. See Tex. Civ. Prac. & Rem. Code § 18.091(b).

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