News & Events

News & Events


Maximizing the Medical Care Exception to the Tax on Emotional Distress Damages

Bookmark and Share

Unlike damages for personal physical injuries, damages received for non-physical injuries such as emotional distress are typically taxable.  However, where medical care costs have been or will be incurred by a plaintiff with an emotional distress claim, proper planning under Section 104 can improve both plaintiff’s and defendant’s post-settlement position. This article discusses the use of a structured settlement as one way to reduce tax liability.

Read the article (PDF).