las0210
Returning Member

Car Accident Settlement Taxable?

My leased car was totaled in an accident.  The insurance company’s settlement amount exceeded what the leasing company wanted as payment.  I received the difference from the insurance company.  Additionally, the leasing company sent me a check stating the insurance company overpaid them (how/why I do not know).  Are those payments taxable on Federal and Kentucky state returns?  Than you.