Get your injury award or settlement tax free

Uncle Sam provides a generous tax exclusion for awards and settlements arising from injury lawsuits.

That’s right. You can use the exclusion, along with other tax-reduction strategies, to minimize any tax you have to pay on the amount you receive.

Getting injured is no fun. And neither is paying taxes on an award or settlement.

I’ll show you how to cut your tax bill and handle things the right way when you read my new article titled Tax Tips: Tax-Free Injury Awards and Settlements.

We’ll explain the “physical injury or illness” restrictions. In order to qualify for tax-free treatment, you must have sustained “physical injury or illness.” What kind of damage awards can you exclude from income? We’ll list five when you read the full article.
You’ll learn the rules governing emotional distress. The IRS doesn’t consider emotional distress to be a physical injury or illness for the purpose of claiming an exclusion. But you can exclude a damage award from taxable income if that emotional distress is attributable to physical injury or illness. All will be explained when you read the full article.
We’ll tell you why detailed documentation is so important. For starters, you’ll need to show the IRS a court document or settlement agreement. If you can’t produce one, IRS examiners will look at five factors to determine if your application passes muster. We’ll tell you what they are when you read the full article.