https://ttlc.intuit.com/community/taxes/discussion/do-i-have-to-pay-taxes-on-a-car-insurance-settlement/01/2565896#M952310 <P>Hello</P><P>Last year I had a car accident in July, and received 2 payments: one to cover my car value, and the other one to cover therapy and recovering treatment. Should I include those values in my income for the year?</P> Mon, 09 Mar 2026 08:33:57 GMT Doris2022 2026-03-09T08:33:57Z https://ttlc.intuit.com/community/taxes/discussion/do-i-have-to-pay-taxes-on-a-car-insurance-settlement/01/2565896#M952310 <P>Hello</P><P>Last year I had a car accident in July, and received 2 payments: one to cover my car value, and the other one to cover therapy and recovering treatment. Should I include those values in my income for the year?</P> Mon, 09 Mar 2026 08:33:57 GMT https://ttlc.intuit.com/community/taxes/discussion/do-i-have-to-pay-taxes-on-a-car-insurance-settlement/01/2565896#M952310 Doris2022 2026-03-09T08:33:57Z https://ttlc.intuit.com/community/taxes/discussion/re-do-i-have-to-pay-taxes-on-a-car-insurance-settlement/01/2565976#M952311 <P>No, generally a car accident settlement is not taxable and you don't have to report it.&nbsp;</P> <UL> <LI>Payments for damage to your car are not taxable.</LI> <LI>Payments for medical expenses are not taxable.</LI> <LI>Payments for pain and suffering are not taxable.</LI> <LI>Payments for lost wages are taxable.</LI> </UL> <P>If a part of your settlement is for lost wages, you do need to report that part only as taxable income.&nbsp;</P> Wed, 09 Mar 2022 21:32:10 GMT https://ttlc.intuit.com/community/taxes/discussion/re-do-i-have-to-pay-taxes-on-a-car-insurance-settlement/01/2565976#M952311 JulieS 2022-03-09T21:32:10Z