Tax Treatment of Lawsuit Settlements: What Every Litigator Should Know

Robert W. Wood
Robert W. Wood | Wood LLP

Rob Wood is often listed among the top ten tax lawyers in America. He handles a broad range of tax planning and tax controversies. He also serves as an expert witness on tax matters in civil cases, class actions, disputes over independent contractor or employee classification, etc. A widely published author known for explaining and demystifying complex tax concepts, Mr. Wood is best known for his expertise in advising plaintiffs, defendants, lawyers, and settlement funds on settlements and judgments.

Live Video-Broadcast: June 18, 2025

1 hour CLE

Tuition: $395.00
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Program Summary

This program offers a timely and practical analysis of the tax implications related to lawsuit settlements and judgments. Attendees will gain a clear understanding of which types of damages are taxable, when settlement proceeds may qualify as capital gains, and how to navigate key distinctions under current tax law. The session will also explore the treatment and deductibility of attorney’s fees, including recent developments under the Tax Cuts and Jobs Act (TCJA). In addition, participants will learn best practices for drafting settlement agreements, negotiating favorable tax outcomes, and avoiding common pitfalls related to Form 1099 reporting.

Key topics to be discussed:

  • Understanding damage awards
  • Capital gains vs. ordinary income
  • Attorney fees and tax deductibility
  • Strategic settlement structuring

Date / Time: June 18, 2025

  • 1:00 pm – 2:00 pm Eastern
  • 12:00 pm – 1:00 pm Central
  • 11:00 am – 12:00 pm Mountain
  • 10:00 am – 11:00 am Pacific

Closed-captioning available

Speakers

Robert W. Wood | Wood LLP

Rob Wood is often listed among the top ten tax lawyers in America. He handles a broad range of tax planning and tax controversies. He also serves as an expert witness on tax matters in civil cases, class actions, disputes over independent contractor or employee classification, etc. A widely published author known for explaining and demystifying complex tax concepts, Mr. Wood is best known for his expertise in advising plaintiffs, defendants, lawyers, and settlement funds on settlements and judgments. He authored the leading book on this topic, Taxation of Damage Awards & Settlement Payments (5th Ed 2021), as well as the Bloomberg Tax Management Portfolio Tax Aspects of Settlements and Judgments (522).

The author of numerous other tax books and hundreds of articles, he is listed among the elite tax lawyers in the United States by many best lawyer’s periodicals. Mr. Wood writes regular columns in Tax Notes, Forbes and other publications, and comments on tax matters in the media.

Agenda

I. Understanding damage awards| 1:00pm – 1:15pm

II. Capital gains vs. ordinary income | 1:15pm – 1:30pm

III. Attorney fees and tax deductibility | 1:30pm – 1:45pm

IV. Strategic settlement structuring | 1:45pm – 2:00pm

Credits

Alaska

Approved for CLE Credits
1 General

Our programs are CLE-eligible through Alaska’s recognition of multi-jurisdictional reciprocity.
Alabama

Approved for CLE Credits
1 General

Arkansas

Approved for CLE Credits
1 General

Arizona

Approved for CLE Credits
1 General

California

Approved for CLE Credits
1 General

Colorado

Pending CLE Approval
1 General

Connecticut

Approved for CLE Credits
1 General

District of Columbia

No MCLE Required
1 CLE Hour

Delaware

Pending CLE Approval
1 General

Florida

Approved via Attorney Submission
1 General Hour

Receive CLE credit in Florida via attorney submission.
Georgia

Pending CLE Approval
1 General

Hawaii

Approved for CLE Credits
1.2 General

Iowa

Pending CLE Approval
1 General

Idaho

Pending CLE Approval
1 General

Illinois

Approved for CLE Credits
1 General

Indiana

Approved for CLE Credits
1 General

Kansas

Pending CLE Approval
1 Substantive

Kentucky

Pending CLE Approval
1 General

Louisiana

Pending CLE Approval
1 General

Massachusetts

No MCLE Required
1 CLE Hour

Maryland

No MCLE Required
1 CLE Hour

Maine

Pending CLE Approval
1 General

Michigan

No MCLE Required
1 CLE Hour

Minnesota

Approved for CLE Credits
1 General

Missouri

Approved for CLE Credits
1.2 General

Mississippi

Pending CLE Approval
1 General

Montana

Approved for CLE Credits
1 General

North Carolina

Pending CLE Approval
1 General

North Dakota

Approved for CLE Credits
1 General

Our programs are CLE-eligible through North Dakota’s recognition of multi-jurisdictional reciprocity. Section 1, Policy 1.14
Nebraska

Pending CLE Approval
1 General

myLawCLE reports attendance to Nebraska on each attorney’s behalf for all programs. Please do not self-report.
New Hampshire

Approved for CLE Credits
60 General Minutes

As of July 1, 2014, the NHMCLE Board no longer provides pre- or post-approval of courses. Attendees must self-determine whether a program is eligible for credit, and self-report their attendance online at www.nhbar.org, based on qualification provisions of Rule 53.
New Jersey

Approved for CLE Credits
1.2 General

Our programs are CLE-eligible through New Jersey’s recognition of multi-jurisdictional reciprocity, except for the courses required under BCLE Reg. 201:2
New Mexico

Approved for CLE Credits
1 General

Nevada

Approved for CLE Credits
1 General

New York

Approved for CLE Credits
1.2 General

Our programs are CLE-eligible through New York’s Approved Jurisdiction Group “B”.
Ohio

Approved for CLE Credits
1 General

Oklahoma

Pending CLE Approval
1 General

Oregon

Pending CLE Approval
1 General

Pennsylvania

Approved for CLE Credits
1 General

Rhode Island

Pending CLE Approval
1 General

South Carolina

Pending CLE Approval
1 General

South Dakota

No MCLE Required
1 CLE Hour

Tennessee

Approved for CLE Credits
1 General

Texas

Approved for CLE Credits
1 General

Utah

Pending CLE Approval
1 General

Virginia

Not Eligible
1 General Hour

Vermont

Approved for CLE Credits
1 General

Washington

Approved via Attorney Submission
1 Law & Legal Hour

Receive CLE credit in Washington via attorney submission.
Wisconsin

Pending CLE Approval
1 General

West Virginia

Pending CLE Approval
1.2 General

Wyoming

Approved for CLE Credits
1 General

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