The 1982 Law Behind Tax-Free Structured Settlements
Structured settlement payments escape federal income tax because of one 1982 law—and a later rule decides who pays the 40% tax when you sell.

Structured settlement payments escape federal income tax because of one 1982 law—and a later rule decides who pays the 40% tax when you sell.

Qualified assignments make injury settlements tax-free under IRC 130—but selling those payments can trigger a 40% tax most sellers never see coming.