Are Structured Settlement Payments Income?
John Darer • October 5, 2018
Do You Have to Report Structured Settlement Payments?
Structured settlement payments are income
, however structured settlement payments are exempt income,
if they represent payment of damages for personal physical injury, physical sickness, wrongful death or workers' compensation, and wrongful imprisonment [ see Internal Revenue Code of 1986, as Amended Sections 104(a)(1), 104(a)(2), 139F and 130].
Structured settlement payments you receive during the year under the above circumstances, are not reportable
on your tax return according to two CPAs I asked.
Here's what the IRS says:
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 the settlement
proceeds in your income.
Where structured settlement are used to pay for taxable damages or for structured attorney fees, payments are generally considered income and reportable in the year received.
Always speak to your CPA about your personal tax situation.
In the structured settlement annuity industry, dominated by many of the largest life insurers in the United States, Independent Life Insurance Company (ILIC) achieved significant milestones in 2024. Good news, positives and some concerns discussed in this lattest post.
Prudential and Pacific Life have once again been named among the world's most ethical companies. Prudential received the award for the 11th time., Pacific Life received the award for the 8th time. Prudential and Pacific Life are leading issuers of structured settlement annuities.
John Darer reviews structured settlement annuity market expansion featuring 3 new entrants Athene Life & Annuity, American National (ANICO) and Puritan Life as well as MetLife's development of a best in class
What is a Settlement Agreement and Release? What is the role of a Settlement Agreement and Release in establishing a structured settlement? What is a compromise?
John Darer reviews the primary structured settlement market, secindary market and tertiary structured settlement markets
A structured settlement annuity does not drive the tax consequences of structured settlement annuity payments. It is the type of damages the structured settlement annuity payments represent, as reflected in the relevant settlement documentation executed by the settling parties
Structured settlement beneficiary death claim. An executor cannot change the beneficiary of a structured settlement annuity. StructuredTypically, settlement agreements permit the Payee to name or change a beneficiary, provided such change is in writing and submitted to the Assigmment Company or annuity issuer in writing and in proper form.
Which life insurance companies write structured settlement annuities for personal injury and wrrongful death settlements in Bronx, Brooklyn, Staten Island, Queens, Manhattan, Long Island, Westchester, Erie, Rockland, Albany,Monroe in 2025 through licensed representatives?
Why Structured Settlements? Because Certain Sells® Structured settlements offer predictable income streams, which can be appealing to rein in uncertainty. John Darer reviews some other reasons that structured settlements are increasingly being used to settle cases:
Structured settlements have roots that trace back more than 100 years, from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as the core personal injury settlement planning tool it is today.
