Taxable Settlements

Electing to receive periodic payments prior to settlement provides an opportunity to receive income in a more tax-efficient manner. The potential advantages of deferring taxable income include: greater after tax overall payout than would otherwise be achieved with a single lump sum payment, avoidance of higher tax brackets, preservation of deductions that may be lost at higher income levels, and avoidance of the alternative minimum tax (AMT).

Periodic payments are flexible and can be designed to provide many options.  Options may include guaranteed lump sums; lifetime payments paid out weekly, monthly or annual; immediate or deferred payments and/or a cost of living adjustment (COLA) to offset the impact of inflation or even random payment to meet future obligations or events.

Taxable Case types we handle:

  • Attorney Fees (including stand-alone)
  • Employment Disputes
  • Environmental Claims
  • Discrimination
  • Divorce
  • Paternity Claims
  • Construction Defects
  • Property Damages
  • Coverage Buyouts
  • Breach of Contract
  • Sexual Harassment
  • Punitive Damages
  • Breach of Confidentiality
  • Psychological/Emotional damage
  • Fraud

2015 Taxable Income Brackets and Rates


Rate Single Filers Married Joint Filers Head of Household Filers
10% $0 to $9,275 $0 to $18,550 $0 to $13,250
15% $9,276 to $37,650 $18,551 to $75,300 $13,251 to $50,400
25% $37,651 to $91,150 $75,301 to 151,900 $50,401 to $130,150
28% $91,151 to $190,150 $151,901 to $231,450 $130,151 to $210,800
33% $190,151 to $413,350 $231,451 to $413,350 $210,801 to $413,350
35% $413,351 to $415,050 $413,351 to $466,950 $413,351 to $441,000
39.6% $415,051+ $466,951+ $441,001+