Monday, March 3, 2008

Tax Implications of Selling Structured Settlements

Filed under: Structured Settlements — Structured Settlements Pro @ 2:31 pm

When an injured party agrees to a structured settlement the payments they receive are tax free of both federal and state income taxes.

One myth is that selling your settlement payments will cause your tax status of the settlement to change. This is not true. When one sells some or all of their future payments for a lump sum of cash the money remains tax free. There are no negative tax implications to selling your structured payment.

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