Income taxes be damned, structured settlements can be had tax-free
San Francisco, CA -- (SBWIRE) -- 03/08/2013 -- 2013 saw one of the largest tax increases in history, and combined with state and local taxes. United States taxpayers can end up paying nearly 50% of their income in certain jurisdictions for the first time since income taxes were levied.
To add to the burdening of taxpayers, there are even more proposals for additional taxes that are coming down the pipeline. Those additions include caps on itemized deductions, as well as exemptions. Such moves are sure to further erode the income of the average American.
Many individuals know of the vast majority of states impose tax on income. The states that do not include individual income taxes is Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. There are 17 states that also have a county tax, with the average rate being 1.55%.
There is often still a local tax which appears under an array of distinctions. It can be noted as wage taxes, income tax, payroll tax, local service tax, or even occupational privilege tax. Some of the said taxes are imposed as percentage of salary, while others are stated as a percentage of federal or state tax. These taxes are also known as “piggyback local taxes”.
But are such taxes important? Many claims handlers and attorneys will explain that a structured settlement is a settlement options that allows income tax free payments over time, and provides secure and guaranteed income to injured claimants for liability and workers' compensation claims.
To put in perspective, if a claimant is set to receive a $400,000, they can either take cash or have it paid in allotments in a structured settlement. The latter option pays them $500,000 over time, with the total being income free.
As taxes rise and eat up more income and more of the investment return, a tax-free structured settlement with a 3% yield is more likely to keep money in the claimants pocket than a higher yield due to erosion of the increasing taxes. This makes the structured settlement an option that is becoming more and more appealing as the years pass and the taxes inch ever-higher.
About My Structured Settlement Cash
My Structured Settlement Cash (http://www.mystructuredsettlementcash.com/) provides customers with information on options for gaining a structure settlement. Learn how you can gain access to your tax-free structured settlement and start receiving your the money you deserve, fast. Visit the website for more on cash for structured settlement and structured settlement cash.
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