Are Structured Settlements Taxable?
Are structured settlements taxable and if so, how? My name’s Chris Parks, I’m a personal injury lawyer. A lot of times in very large lawsuits that involve hundreds of thousands or perhaps millions of dollars, the injured person elects to take their money not in a lump sum, but in a structure. And what that usually means is you get money every month or maybe every quarter, sometimes for the rest of your life.
Those funds are not generally taxable, but there are exceptions. If you are receiving money in a structured settlement and have questions about taxability, feel free to give me a call. If you have been injured and are contemplating a structured settlement, feel free to give me a call. And if you have any general questions about the taxability of structured settlements, read up on structured settlements on the IRS’s website. They can tell you a whole lot about why and when structures are taxed.