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Are Legal Judgments or Settlements Taxable? | Torchlight Tax
That settlement check could be completely tax-free—or a costly tax surprise. It all depends on how your claim is structured and documented. In this video, Attorney Jim Daloisio, Director of Legal Services at Torchlight Tax, breaks down:
● When settlement money is taxable vs. non-taxable
● How the IRS determines tax treatment based on the origin of the claim
● The importance of precise language in your settlement agreement
● How attorney fees, punitive damages, and emotional distress are taxed
● Structured settlement strategies to reduce your tax burden over time Whether you’re settling a personal injury case, workplace claim, or business lawsuit, proper tax planning matters—before you sign.
Torchlight Tax can help ensure your settlement is structured to protect your interests and minimize taxes. For more insights, browse our library of 300+ tax-saving videos and blogs, or contact us for a free consultation. Call: 877-758-7797 Email: torchinfo@torchlighttax.com
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