### Question
How does the law define qualified assignment?


### Answer
Under *26 U.S.C. § 130*, **qualified assignment** is defined as:

> any assignment of a liability to make periodic payments as damages (whether by suit or agreement), or as compensation under any workmen's compensation act, on account of personal injury or sickness (in a case involving physical injury or physical sickness)—


(1) if the assignee assumes such liability from a person who is a party to the suit or agreement, or the workmen's compensation claim, and


(2) if—


(A) such periodic payments are fixed and determinable as to amount and time of payment,


(B) such periodic payments cannot be accelerated, deferred, increased, or decreased by the recipient of such payments,


(C) the assignee's obligation on account of the personal injuries or sickness is no greater than the obligation of the person who assigned the liability, and


(D) such periodic payments are excludable from the gross income of the recipient under paragraph (1) or (2) of section 104(a)

#### Citation:
  - *26 U.S.C. § 130*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

