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dj2
Level 2

Is a dividend check I received from my auto insurance taxable income in PA ?

I received a dividend check from my auto insurance last year that  was the result of reduced vehicle usage/milage representing a percentage of my annual premium in 2020.

The closest related FAQ on Pennsylvania Department of Revenue regarding payments received in response to the Covid-19 pandemic in 2020 being subject to PA Personal Income Tax was answered by the Department with the following:
The Department does not follow IRC § 139.  The taxability of these payments would be dependent on the nature of the payments and would have to be reviewed on a case by case basis.

TT never asked a question on dividends received of this nature, so I'm guessing no, probably not.
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DavidD66
Expert Alumni

Is a dividend check I received from my auto insurance taxable income in PA ?

No, that would not be taxable income.  That would be refund of your insurance premium.   

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3 Replies
DavidD66
Expert Alumni

Is a dividend check I received from my auto insurance taxable income in PA ?

No, that would not be taxable income.  That would be refund of your insurance premium.   

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Bsch4477
Level 15

Is a dividend check I received from my auto insurance taxable income in PA ?

This is not my area of expertise but I would consider  it a return of premium and wouldn’t report it. 

dj2
Level 2

Is a dividend check I received from my auto insurance taxable income in PA ?

I'm very grateful for your response. 

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