- Repair or replacement of your car-- No, this would not be taxable. You did not end up with a gain. You do not need to include it on your return.
Medical expenses-- no, the medical expenses that the insurance paid to the provider is not taxable. You do not need to include it on your return.
Lump Sum Settlement-- Do you have a breakdown on the settlement of what it was for? If some of it was for punitive damages, then that would be taxable income.
When you say compensation for the whole ordeal? That COULD be punitive damages or were you compensated for lost wages? If it was either of those it would be taxable income and if you did not get a 1099-Misc, you would enter this under Other Income by selecting the following:
- Federal
- Income and Expenses
- Scroll down to Less Common Income and click Show More
- Start next to Miscellaneous Income
- Start next to Other Reportable Income
If you are saying compensation for the whole ordeal and it was labeled as emotional stress due to the injuries you received it would not be taxable.
Tax implications of settlements and judgments
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
