No, generally a car accident settlement is not taxable and you don't have to report it.
- Payments for damage to your car are not taxable.
- Payments for medical expenses are not taxable.
- Payments for pain and suffering are not taxable.
- Payments for lost wages are taxable.
If a part of your settlement is for lost wages, you do need to report that part only as taxable income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
