Is an insurance payout from military considered taxable income?
son is in national guard, involved in off duty MVA, received trauma insurance payout from military in 2016 to help with incurred expenses. Is this considered taxable income and required to be reported on tax return?
Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI) provides automatic traumatic injury coverage to all Servicemembers covered under the SGLI program. It provides short-term financial assistance to severely injured Servicemembers and Veterans to assist them in their recovery from traumatic injuries. TSGLI is not only for combat injuries, but provides insurance coverage for injuries incurred on or off duty.
It is a form of Life Insurance. The IRS has deemed this money is NON-taxable....