What would you like to do?
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.
A settlement is usually split into two parts, recovery of damages sustained, and pain/suffering (putative). For recovery of costs, the settlement is not taxed. For pain/…suffering it is taxed.
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).
No, (or a personal one)...but you can't also deduct the casualty loss - up to the amount of the payment...so if they paid you "in full"....thats it.
If you took a deduction for the loss, then the insurance recovery is income up to that amount, otherwise no. The idea is it just restores you to where you would have bee…n, no better, no worse.
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.
no, as claims under fire insurance are totally tax free
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.
No. Insurance benefits from a house fire would be considered a swap of assets. You cannot take a deductible loss on your taxes for the loss that was reimbursed by insuranc…e.