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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-taxable. 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.
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Do you pay taxes on auto insurance settlement for bodily injury?
No. This type of settlement is not generally taxable.
Does someone on Social Security Disability have to pay taxes on an auto insurance settlement?
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 due as a result.
Do you pay taxes on the settlement of an insurance claim?
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.
Do you pay taxes on a business insurance settlement from a fire?
No
Do you have to pay taxes on a health insurance policy settlement?
No.
Do you pay taxes for auto insurance settlement?
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.
Do I need to pay taxes on an insurance claim payment?
No, the insurance settlement is considered compensation for a loss, not income.
What are the tax consequences of a life insurance settlement?
You may have to pay capital gains taxes on a life insurance settlement in addition to any income taxes you might owe. Consult with a CPA or tax attorney to learn more about what tax consequences that a life insurance settlement may have.
Who reimburse your health insurance provider that paid for medical bills if you received a settlement from your auto insurance you or auto insurance?
The insurance company would pay them directly to make sure they are paid.
Do you have to pay taxes on a discrimination settlement with your employer?
Do I have to pay taxes on a discrimination settlement from a former employer
Do you have to pay taxes on a cancer insurance claim?
In the USA you do not pay taxes on the Proceeds from an Insurance Claim.
Does property insurance or auto insurance pay when a auto owner damages his garage with his auto?
Auto Insurance.
