Owner, Best Health And Car Insurance Rates - Instant Online Quotes, US
An auto insurance settlement,in my opinion,would be taxable or partially-taxable. It would be based on liability from injuries sustained and pain/suffering and perhaps other items.
Because it is a tax question, consulting a CPA or accountant would be the best idea. You'll likely receive an accurate answer instead of an educated guess.
Agent, Rural Mutual Insurance Co., Union Grove, WI
Yes and no. Settlement amounts which are to cover vehicle repairs or even replacement and amounts to cover medical expenses resulting from the accident should not be taxable. If you are compensated beyound medical expenses and vehicle repairs or replacement, such as lost wages, etc. These amounts may be taxable. Tax laws change from year to year. Consult your local tax advisor to know what would be taxable under your set of circumstances.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
This is a question best asked of your professional tax adviser, but in general, if the check is to cover repair of the damage done to your car, less your deductible, then the settlement amount is not taxable.
Likewise, if it is to cover medical bills for injuries you have sustained, then it probably is not taxable. However, if there is a punitive amount included in your settlement, this amount may be taxable. However, as I said earlier, this is a question that is properly asked of a tax professional.
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Because it is a tax question, consulting a CPA or accountant would be the best idea. You'll likely receive an accurate answer instead of an educated guess.
Likewise, if it is to cover medical bills for injuries you have sustained, then it probably is not taxable. However, if there is a punitive amount included in your settlement, this amount may be taxable. However, as I said earlier, this is a question that is properly asked of a tax professional.