Income Taxes	3 Months Ended
Mar. 31, 2014
Income Taxes
Income Taxes	16. Income Taxes JGWPT Holdings Inc. is required to file federal and applicable state corporate income tax returns and recognizes income taxes on its pre-tax income, which to-date has consisted primarily of its share (approximately 40.7% as of March 31, 2014) of Holdings LLC’s pre-tax income. Holdings LLC is organized as a limited liability company which is treated as a “flow-through” entity for income tax purposes and therefore is not subject to income taxes. As a result, the JGWPT Holdings Inc.’s unaudited condensed consolidated financial statements do not reflect a benefit or provision for income taxes for Holdings LLC for periods prior to the IPO or any benefit or provision for income taxes on the pre-tax income or loss attributable to the non-controlling interests in Holdings LLC. The Company’s effective tax rate includes a rate benefit attributable to the fact that a portion of Holding LLC’s income is allocated to the non-controlling interests. Accordingly, a portion of the Company’s earnings attributable to the non-controlling interests are not subject to corporate level taxes. The Company’s effective tax rate was 18.6% for the three months ended March 31, 2014, as compared to an effective rate of less than 1.0% for the three months ended March 31, 2013. The increase in the effective tax rate was due to the full quarter’s allocation of income from Holdings LLC to the Company. For the year ended December 31, 2013, the Company was only allocated taxable income for the period after the IPO. The Company’s share of Holdings LLC’s income also increased as a result of holders of common interests having exchanged their Common Interests for shares of the Company’s Class A common stock during the three months ended March 31, 2014 (Note 18).

Income Taxes

3 Months Ended

Mar. 31, 2014

16. Income Taxes

JGWPT Holdings Inc. is required to file federal and applicable state corporate income tax returns and recognizes income taxes on its pre-tax income, which to-date has consisted primarily of its share (approximately 40.7% as of March 31, 2014) of Holdings LLC’s pre-tax income. Holdings LLC is organized as a limited liability company which is treated as a “flow-through” entity for income tax purposes and therefore is not subject to income taxes. As a result, the JGWPT Holdings Inc.’s unaudited condensed consolidated financial statements do not reflect a benefit or provision for income taxes for Holdings LLC for periods prior to the IPO or any benefit or provision for income taxes on the pre-tax income or loss attributable to the non-controlling interests in Holdings LLC.

The Company’s effective tax rate includes a rate benefit attributable to the fact that a portion of Holding LLC’s income is allocated to the non-controlling interests. Accordingly, a portion of the Company’s earnings attributable to the non-controlling interests are not subject to corporate level taxes.

The Company’s effective tax rate was 18.6% for the three months ended March 31, 2014, as compared to an effective rate of less than 1.0% for the three months ended March 31, 2013. The increase in the effective tax rate was due to the full quarter’s allocation of income from Holdings LLC to the Company. For the year ended December 31, 2013, the Company was only allocated taxable income for the period after the IPO. The Company’s share of Holdings LLC’s income also increased as a result of holders of common interests having exchanged their Common Interests for shares of the Company’s Class A common stock during the three months ended March 31, 2014 (Note 18).