Deductions & credits

" So, in total, I received $4940 from the $24292 settlement amount calculated by the insurance company.  Is the $4940 considered taxable income?"

 

How much did you pay in lease payments, not counting the portion of the lease payment that was interest or finance charges?  If you paid more than the amount you received, it is not taxable.  If you paid less than the amount you received, that difference is taxable income.