by Structured Settlement Watchdog
Toronto based buyer of Structured Settlement Payments Has Things All Muddled Up
Say hello to my comfort puppet Zoule. I use it to keep a straight face when encountering some of the silly things said by structured settlement factoring companies“If you received a lump sum…You should consult an accountant for structured settlement advice to see for certain, but you usually know that money is tax free if you do not receive any type of 1098 or other tax reporting form at tax time”.
Consider the following:
26 U.S. Code § 61 Except as otherwise provided in this subtitle, gross income means all income from whatever source derived,
Form 1098 is a form filed with the Internal Revenue Service (IRS) that details the amount of interest and mortgage-related expenses paid on a mortgage during the tax year. These expenses can be used as deductions on a U.S. income tax form, Schedule A, which reduces taxable income and the overall amount owed to the IRS.
Form 1098-C has do with donating a vehicle or plane to charity
Form 1098-E Student Loan Interest
Form 1098-T has to do with Tuition
What about 1099s?
What about 1099s?
Just because you don’t receive a 1099 or W2 doesn’t mean you don’t owe taxes. It just means that the annuity issuer has not reported it.
Consider that with certain types of cases using non qualified structured settlements some insurers will issue a 1099 for the full amount regardless of the basis of the annuitant tax payer. For more information see Construction Defect Structured Settlements (4structures.com)
Last updated August 17, 2024
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