INCOME TAXATION OF LITIGATION PROCEEDS
by Thomas D. Begley, Jr., Esquire, CELA Generally, “all income from whatever source derived” is considered gross income by the Internal Revenue Service (“IRS”).[1] However, income received as a result of a personal physical injury or a physical sickness is not considered income by the IRS.[2] However, punitive damages are considered taxable income.[3] Origin of…
WRAPPING A MEDICARE SET-ASIDE ARRANGEMENT INSIDE A SPECIAL NEEDS TRUST
by Thomas D. Begley, Jr., Esquire, CELA In any recovery involving a personal injury case, the interest of Medicare must be considered.[1] The idea is that because Medicare is a secondary payer, a beneficiary should not be permitted to receive a recovery for future medical care, pocket the money, and then bill Medicare for that…
WHEN IS A MEDICARE SET-ASIDE ARRANGEMENT (MSA) REQUIRED IN A THIRD PARTY LIABILITY CASE?
by Thomas D. Begley, Jr., Esquire, CELA In any recovery involving a personal injury case, the interest of Medicare must be considered.[1] Reasons Support the Argument that the Medicare Secondary Payer Act Applies to TPL Cases with Respect to MSAs There are a number of reasons to believe that MSAs are appropriate in personal injury…