Tax shareholder Matt Meltzer recently assisted the National Structured Settlements Trade Association in recommending to the IRS that it issue guidance regarding the tax treatment of damages for PTSD.
While damages for physical injury and physical sickness are tax free, the status of PTSD damages is uncertain. NSSTA proposes that PTSD – which has physical roots and manifestations – be treated just like any other physical ailment, with damages being tax free.
John McCulloch of Arcadia Settlements Group and a former NSSTA board member also assisted with the submission.
The guidance can be found here (PDF).
It was also featured in “Tax Notes Today,” the leading tax news source: Structured Settlements Group Requests Guidance on PTSD Damages | Tax Notes
