Structured Settlements 4Real®Blog 2026
Structured settlements expert John Darer reviews the latest structured settlements and settlement planning information and news, and provides expert opinion and highly regarded commentary. that is spicy, Informative, irreverent and effective for over 20 years.
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Category: Taxes and Settlements
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A qualified assignment is an assignment of obligation to make future periodic payments which satisfies the requirements of Internal Revenue Code (IRC) §130. The periodic payments must be damages payable by the defendant,its liability insurer, or a QSF and excludable under §104(a)(1) or (2)
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The IRS has consistently held that compensatory damages, including lost wages, received on account of a personal physical injury are excludable from gross income with the exception of punitive damages. Rev. Rul. 85-97 and also see Commissioner v. Schleier, 515 U.S. 323, 329-30 (1995). says IRS.
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The key take away is that it is the damages that are tax exempt. With a properly established structured settlement, that starts with an obligation to make future periodic payments as damages on account of personal physical injury, An annuity commonly funds the periodic payment obligation.
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Your “dating habits” can get you into trouble when establishing structured attorney fee programs, attorney fee deferred compensation,and structured settlements for taxable damages..Avoid January 1 payment dates and resulting funds being deposited into your account, arriving before January 1,..
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Higher taxes make structured settlement tax advantages inherently more valuable. Paul Tudor Jones II, the billionaire hedge fund manager is quoted ‘There’s plenty of room to raise taxes’: Jones says the US will need to change Social Security, cut federal health insurance to deal with a worsening debt crisis — are you ready?
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If Harvey Weinstein, accused by numerous women of sexual harassment (and in a few cases, assault, ends up negotiating settlements with his accusers, many settlements will be taxable. After paying legal fees and federal and state income taxes, it could leave a third or less to the victim depending on their attorney’s contingency fee agreement.
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Attorney Fee Deferred Compensation | Structured Attorney Fee Alternative for Trial Lawyers.Guide to Personal Injury Attorney Fee Tax Deferral Plans. An Overview for Year End Tax Planning
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Can retired New York State lawyers who have structured attorney fees take an exclusion, on that income, of up to $20,000 intended for retirees on their structured attorney fee income?
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Compensation for pain and suffering resulting from the consensual performance of a service contract is not “damages” under I.R.C. section 104(a)(2) and must be included in gross income
