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Do you pay taxes for auto insurance settlement?
If an auto insurance pays for medical claims and a settlement is received from an at-fault driver for bodily injury is that to repay the insurance co?
According to my insurance company, if i receive money from the at fault other driver as in a settlement, then yes I have to repay my own insurance company for the medic…al related expenses they paid for me that fell under my medical coverage policy. So if you have 10,000 in bodily injury and you used 5,000 in medical and you were awarded 20,000 by the other insurance company, you must pay them back that 5,000 and can keep the rest. This may not be true for all companies. Your claim advisor or insurance agent should be able to answer for you. The other screwy thing is that if you have to go to court to get a settlement or any money awarded, my insurance company said they will not pay for any costs associated with a lawyer or court but that if I get any money, I HAVE to pay them back all the medical they paid out on my behalf. I can choose to get whatever settlement is offered and get the leftovers, I can hire an attorney(out of my pocket) or I can do nothing. I am not sure why we pay these people. In the UK there are very clear distinctions between compensation for pain and suffering for bodily injury and financial expenses such as medical expenses. Often the sums paid by your auto insurer on your behalf including vehicle repair expense will be claimed directly by your auto insurer from the person at fault whilst your solicitor deals with the claim for your bodily injury and additional financial losses. However, your solicitor will liaise carefully with your auto insurer to ensure that the insurer's rights are not prejudiced and all proper monies are recovered. To see examples of the types of compensation you can claim click the related link entitled "traffic accident compensation". In Florida, the answer depends on whether you have uninsured/under-insured motorist ("UM") coverage. First, your own company must pay the first $10k, then the at-fault party must pay the remainder, up to the policy limits. If the at-fault party's policy limits do not cover all the expenses and you intend to seek the unpaid remaining expenses from your policy (the UM coverage) and not from the at-faulty party, then you must obtain permission from your own insurance co. prior to settling for the at-fault party's policy limits. As to the first bulleted answer above: that person should really find someone UNBIASED to seek advice from other than the employee of the for-profit insurance company.
Answer For US Federal taxes, it would depend on who was paying the premiums for one thing. If you pay the premiums yourself and the loss is not business related,… then no. If your employer pays the premiums or if the loss is business related then maybe. Based strictly on the information given in this question, the answer would be no.
Answer I am a resident of New York State and was involved in a personal injury accident. The settlement that I received is considered wages. You will have t…o check with your state and local tax laws. I am sure that a phone call to Jackson & Hewwitt or H & R Block in your state will work as well.
I had a huge settlement from an auto insurance company and it was not taxed. However I believe that was because my attorney negotiated a type of settlement that made it non-ta…xable. I thnk it has to be considered "punitive damages" or something like that for it not to be taxed. Update - Generally, amounts paid for personal injury and property damage are NOT taxable. Amounts paid for punitive damages and loss of income ARE taxable.
You do not generally have to pay taxes on an insurance settlement claim. You can check with your tax firm or accountant for the rules specific to your state.
Not exactly. Reimbursement for the loss is not taxable income....just like simply selling the property at no loss/gain would not have been income. Common sense prevails here… - what you CAN'T do is take a casualty loss for damages that are reimbursed by insurance. (The reimbursement means you didn't have a loss). To the degree you have an unreimbursed loss, that's fine. If you report a loss and then are reimbursed, essentially that would become income.
You should of course check with your tax preparer or advisor. certain types of paid claims such as Loss of future income may be taxable. But In general the answer will be "NO…" This is because most claim settlements are compensation for a loss and not considered profit or earned income.
all do. however, if you get to many accidents they can drop you. If you are looking to be insured, ask the insurer, they will tell what they will allow and what they don…'t.
It depends on what the lawsuit payment is for. Generally, if it is paying you for the loss of property, no. If it paying you for the loss earnings (or as a penalty to th…e one paying it) then it's taxable to you. (The income would have been taxed had you not had to sue).
No, the payment is not taxable to the degree that it just replaces the value of your loss. However, if you previously, or currently, take a tax casualty loss for th…ose items, that amount WOULD be taxable. (The receipt of the insurance made so you did not actually have a loss).
Generally speaking you do not have to pay taxes on personal injury settlements. However, in certain situations where (1) all or part of the proceeds of the settlement is treat…ed as disability income, and (2) the premium of the policy (under which the proceeds were paid) was paid by an employer; then that part of the proceeds will be treated as a taxable ordinary income.
No, that should not be considered taxable income. If it is a large loss and you do not use the money towards the repair, you could run into tax trouble. I would consult an acc…ountant if this is the case.
The auto insurance settlement wouldn't be taxable unless you realize a gain from it. Being on Social Security Disability doesn't exempt you from paying any taxes that may be d…ue as a result.
No. This type of settlement is not generally taxable.
The amount paid to replace a roof is not taxable unless you tried to take a deduction for a casualty loss on your taxes for this.