topic Insurance Claim/settlement in Retirement tax questions

Insurance Claim/settlement

adolfo-lozano — Wed, 11 Feb 2026 04:12:54 GMT

I filed a claim with my insurance company for damages to my roof after a storm. Insurance company denied my claim. I hired an attorney to represent me. After 2 years, my attorney issued a check to me to pay for the damages. I asked my attorney if I should expect a 1099-MISC from him or the insurance company for which he replied "no". My question is, is this money taxable by the IRS?

Re: Insurance Claim/settlement

MinhT1 — Wed, 07 Feb 2024 18:02:28 GMT

This payment is for damage resulting in a loss in value of your property. This isn't taxable and you don't have to report it on your tax return.

Please read this IRS document, paragraph Loss-in-value of property.

Re: Insurance Claim/settlement

adolfo-lozano — Wed, 07 Feb 2024 19:29:51 GMT

Thank you very much! I appreciate it.