- Repair or replacement of your car: the car was totaled and the money I got back was less than the money I had paid 10 years earlier to buy it new: it was appraised by the other driver's insurance and I was given the money needed to buy a similar one (same mileage, similar wear and tear, and so on). I had to put additional money to buy another car, actually. Car was never used for self-employed work, only for personal use.
That money shouldn't be taxable since it was repayment for my car loss. Do I still have to file it and where/how?
- Medical expenses: I did not use any HSA or FSA to pay for my bills; also in past years I only used the standard deduction. I did not itemize medical expenses for deduction. The first $10K of medical expenses were covered directly by my insurance company as part of my Personal Injury Protection (PIP) insurance. Once the PIP money ran out, I paid out of my own pocket using my own health insurance. The PIP money also shouldn't be taxable since it was the car insurance company paying the medical providers. Do I still have to file it, and where/how?
- Interest (if the payment was late and included bank interest): there were no interests
- Finally, the other driver's insurance company offered a lump sum settlement to close the claim without going to trial. This is the money I am most unsure about. Is it Punitive damages? The money was meant to cover medical expenses (present and not covered by PIP and future) plus compensation for the whole ordeal. However, I am not sure how it is going to be "interpreted" for tax purposes. Clearly I wasn't made whole (such as having to spend
