Mar
Level 3

Is a car insurance payout for a death taxable income?

My husband was hit by a car and killed in 2019.  The driver was never identified and my car insurance covered the death (under the uninsured/underinsured driver) even though my husband was a pedestrian and our vehicle was not involved in the accident. The insurance settlement was paid to me in 2020.  Is this considered taxable income? How do I report it?