Curious about whether or not you have to pay taxes on your Jones Act settlement? Typically under the IRS Code (Section 104(c)) there's language that says money you receive on account of a personal injury is not considered gross wages to you.
When we protect our clients and their settlements, we almost always insist this language is in the release. This ensures that there’s no confusion when our clients file their taxes; they simply show the release to the accountant and say this money was under Section 104(c) on account of personal injury and it should not be taxable.
If you're doing a Jones Act settlement, take care to make sure you talk to your attorney about this. He should know this type of information if he's protecting your interests. Call us if you have any questions about whether or not money you may get through the Jones Act is going to be taxable to you.