Filing status is married filing jointly. My wife was employed by a home builder in 2015. Her house flooded. Insurance payments for repair were made out to her, her ex-husband (joint owner of the house) and her employer/contractor. She later quit that job as is now working elsewhere.
Her former employer (the home builder/contractor) sent a 1099-misc form listing the money received from insurance settlement.
do we have to pay taxes on this, even though it was not earned income and was spent to repair the house?
