This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.
Subscribe to the Daily Journal for access to Daily Appellate Reports, Verdicts, Judicial Profiles and more...

Torts/Personal Injury,
Tax

Mar. 24, 2026

Tax pitfalls in personal injury settlements

Every lawyer should know a few key tax rules that can shape what plaintiffs actually take home after a case resolves. Settlement wording, the claims involved and even how checks and Forms 1099 are issued can change the tax result.

Robert W. Wood

Managing Partner
Wood LLP

333 Sacramento St
San Francisco , California 94111-3601

Phone: (415) 834-0113

Fax: (415) 789-4540

Email: wood@WoodLLP.com

Univ of Chicago Law School

Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.

See more...

Tax pitfalls in personal injury settlements
Shutterstock

Every lawyer should know a few key tax rules that could influence what their clients will take home when the smoke clears after a lawsuit is resolved. Wording in settlement agreements influences taxes to a surprising degree, and a little tax knowledge can come in handy when you are trying to settle cases. Plaintiffs want to know whether their settlement is taxable, and even if your engagement letter s...

To continue reading, please subscribe.
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$895, but save $100 when you subscribe today… Just $795 for the first year!

Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)

Already a subscriber?

Enewsletter Sign-up