Lump sum cancer payment

I received a lump sum cancer payout from Cigna this year will I have to pay taxes on that? It was not through an employer

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1 Best answer

Level 15

Nov 5, 2023 12:53:06 PM

@Teresa9801 Maybe . Cigna states it may be taxable if the payment exceeds the cost of the medical expenses.

Look at the Cigna website and the footnote: (it this why you are getting a lump sum payment? did you buy this policy?)

2 Benefits received in excess of medical expenses may be considered taxable income. Consult your tax advisor.

Level 15

Nov 5, 2023 7:33:16 AM

If the premiums were paid with after tax dollars you would owe no tax.

Level 15

Nov 5, 2023 12:53:06 PM

@Teresa9801 Maybe . Cigna states it may be taxable if the payment exceeds the cost of the medical expenses.

Look at the Cigna website and the footnote: (it this why you are getting a lump sum payment? did you buy this policy?)

2 Benefits received in excess of medical expenses may be considered taxable income. Consult your tax advisor.