CEB Employment Blog Post

CEB Employment Blog Post

February 11, 2013 – An excellent blog written by Julie Brook for the Continuing Education of the Bar (CEBblog) last August is being revisited here today for one very good reason.

The American Taxpayer Relief Act of 2012 (ATRA).

Tax QuestionsThe straightforwardly titled “Is the Money You Got in Your Employment Case Taxable?” blog very succinctly breaks down the general tax treatment of employment damages.  Many of these facts are surprisingly overlooked by many practitioners to the financial detriment of their client.

With ATRA increasing the top marginal tax bracket from 35% to 39.6% and many states, including California, increasing state tax rates to make up budget shortfalls, understanding this critical dynamic is more important than ever.

Best Employment Attorney Advice Ever:  Because taxes can erode the net recovery of many employment settlements, it is VITAL to consider a Non-Physical Injury Structured Settlement before finalizing any settlement discussions.

Structured settlements have been a preferred settlement option for many physical injury plaintiffs since their inception more than 30 years ago because of the significant tax advantage.

But on non-physical injury settlements, such as those resulting from most employment disputes, the tax advantage is even greater.

This topic is important enough that we have created a special website dedicated to helping clients better understand the benefits.

Visit:  MyTaxableSettlement.com to learn more.

Private Letter Ruling 200836019 lays the foundation for preferential tax treatment of employment settlements when using a non-physical injury structured settlement.

Call us today for a confidential analysis of your own situation.  We are pretty confident we can save you money.

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