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

2018 Taxable Income Brackets and Rates

Rate Single Filers Married Joint Filers Head of Household Filers
10% $0 to $9,525 $0 to $19,050 $0 to $13,600
12% $9,526 to $38,700 $19.051 to $77,400 $13,601 to $51,800
22% $38,701 to $82,500 $77,401 to 165,000 $51,801to $82,500
24% $82,501 to $157,500 $165,001 to $315,000 $82,501 to $157,500
32% $157,500 to $200,000 $315,001 to $400,000 $157,501 to $200,000
35% $200,001 to $500,000 $400,001 to $600,000 $200,201 to 500,000
37% $500,001+ $600,001+ $500,001+