Do you pay taxes on the settlement of an accident insurance claim?

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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.
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Do you have to pay federal or state taxes on an insurance claim settlement?

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

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