How Your Structured Settlement Stays Outside Self-Employment Tax
Structured settlement money never counts toward the $184,500 Social Security wage base or your self-employment tax—see why, and what still gets taxed.

Structured settlement money never counts toward the $184,500 Social Security wage base or your self-employment tax—see why, and what still gets taxed.

Structured settlement payments taxable? IRC Section 104(a)(2) excludes most — but selling triggers a 40% excise under IRC 5891. Here’s the IRS test that controls your answer.