Do you have to pay taxes on your Jones act settlement? Is a Jones Act or maritime injury settlement taxable?
Is a settlement under the Jones Act or maritime law taxable? Generally no.
Under Internal Revenue Code § 104 there's language that says any money you receive on account of a personal injury is not considered income to you during that year. What this means is that you receive a Jones Act settlement or a maritime settlement the money is most likely not going to be taxable to you. However you want to insist in your settlement document that the company actually spells out and says that the money they are paying you in settlement is under Section 104 of the Internal Revenue Code. We always protect our clients by making sure that this language is in their settlement documents.
Call us if you have any questions about your Jones Act settlement, any money the company may be offering you to settle your claim or any other questions about your rights, choices or options under maritime law or the Jones Act.