Those Gulf Coast residents who have been financially harmed by the BP oil spill have been promised payments from the $20 billion fund the Obama administration negotiated from BP. But it seems those victims of the spill will have to kick some of that money back to the government.

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The Internal Revenue service says that under current law, payments from the BP fund for lost wages are taxable as the lost wages would have been. Payments for physical injuries or property loss are generally tax free. (source)

Helpful as always, the IRS will be holding forums this month in Gulf area cities to answer any questions victims of the spill may have about their taxes.