Skip to main content

I have a settlement and confidentiality agreement for personal injury. They did not allocate the monies. How do I determine tax?

Apopka, FL |

The confidentiality clause is for both parties , but is 100% repayable if I breach confidentiality . Do I have to pay taxes on 100% of the money even though the claim was for personal injury ? In familiar with the Amos case involving Dennis Rodman , can I assume that the 60 / 40 is right in my case ? What do I need to look for in my settlement papers to determine so ?

+ Read More

Attorney answers 6


Despite the confidentiality clause you are entitled to speak with a CPA and an attorney regarding the issues of tax compliance. Both of those parties owe you a duty of confidentiality. You should first speak with your attorney. They may have allocated the the money based on the wording of the agreement. They may also refer you to a tax attorney or cpa that they use for consulting on these issues. Your attorney likely will help you on this issue.

You have asked us to state an opinion based upon stated facts. You have not provided us with any documents, pictures, witness statements or other admissible evidence. The opinions stated are based upon general principles of law unless otherwise stated, which may or may not be applicable in your jurisdiction. Controlling law is also subject to change or reversal at any time. Any such changes may be retroactive and could significantly modify the statements and opinions expressed herein. Similarly, any change in the facts and assumptions upon which this opinion is based could modify the conclusions. We opine only as to matters expressly set forth, no opinions should be inferred as to other matters or to treatment of matters not specifically addressed. This opinion represents our best judgment as to the probable outcome of the issues discussed and is not binding on the courts or upon your adversaries. We can give no assurance that an adversary would not challenge our conclusions and prevail in the courts in a manner to cause adverse consequences. With respect to some of the matters discussed in the opinion, existing legal precedent may provide very little legal guidance. Although the opinions and views expressed are based on our best interpretations of existing law and what we believe a court would probably conclude if presented with the applicable issues, we can give no assurance that our interpretations would be followed if the issues became the subject of judicial or administrative proceedings. Realization of certain benefits described is subject to the risk that a tenant may challenge the treatment and that a court may sustain the challenge. Because you may bear the burden of proof required to establish a fact, the opinions expressed assume the you will undertake the effort and expense to present fully the case in support of any matter that you have asserted and an opponent might challenge. None of the advice provided here may be used to avoid tax liability, interest or penalties. If you want that level of assurance you will need to allow us to perform the full opportunity to explore the facts and law applicable to your specific circumstances. I provide answers here to allow people to see the style of communication and type of analysis applied to factual statements.


Generally there is no tax owed on a personal injury settlement. On the off chance there is something unusual about your case, by all means discuss this with a tax advisor. Confidentiality does not apply to such a consultation.

Any opinions stated in response to Avvo questions are based upon the facts stated in the question. Responses to Avvo questions are for general information purposes only, and should not be construed or relied upon as legal advice.


You are entitled to speak with a tax professional regarding the tax implications of the structuring of your settlement. My colleagues are correct in that generally personal injury settlements are non-taxable, but depending on how the settlement is worded or funds allocated there may be tax implications. Have a consultation with a tax attorney or CPA. Good luck.

** LEGAL DISCLAIMER ** This response above is not legal advice and it does not establish an attorney-client relationship. When responding to questions posted on Avvo, a general purpose response based on Florida law is provided. All relevant background details or facts related to your issue / matter is not available. Therefore, I am not in a position to give you legal advice. Further, the review, use of, or reliance upon my response does not establish an attorney-client relationship. For specific advice regarding your particular circumstances, you should consult and retain local counsel. Karen Munzer, PLLC,, E-Mail: , Tel: (786) 501-6655


I do not believe that net proceeds to a client recovering monies as part of a personal injury settlement are taxable.


Unless there was a lost wage component, pain and suffering money is not taxed.

Only 29% Contingency Fee! Phone: 215-510-6755


First, at least here in Florida, most personal injury settlements are not apportioned between the various types of damages. That normally only happens if the case is tried and the jury completes the verdict form. This is a question for your CPA, and most attorneys (myself included) will have disclaimer language on the closing statement advising client that no tax advice is implied. I think you are concerned because you think the consideration for the confidentiality agreement may be taxable. Again, talk to your CPA.

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer