I just received a ins.payout {$15K} will this be taxable income?

[Lisa995]

Generally no, but it may depend on the circumstances of the payout....what did you get the money for?

[taxdotty]

compensation for accident

[Carl]

Depends on what the compensation was for. For example, if the payout or any part of it was for lost wages, it will be taxable income in the tax year you received it.

[Lisa995]

you may want to ask your attorney what to expect

[Anonymous · Accepted solution]

on the other hand if it's for reimbursement of medical expenses it wouldn't be taxable unless you deducted and got a tax benefit from deducting the expenses in a prior year