How do I handle Auto PA Wage Loss for tax purposes?

[rockstar8577]

I was in a car accident and I lost a job since I could not finish the training that I had just started. I have since found a new job which pays less. I receive a PA Wage Loss payment from my auto insurer that covers the wage difference between the 2 jobs. How do I handle this for my tax return?

[re2boys]

Did you receive a 1099MISC from the insurance company?

[rockstar8577]

I didn't receive any tax papers from them. And when I asked them if there was any they said no.

[rockstar8577]

Only question is if it's a no fault policy. I was the sole person in the crash, and technically I'm at fault. I couldn't see and ran through a T intersection. Would that change any bearing?

[rockstar8577]

Okay so when I asked the agent if there was any forms she called them a. Disability/wage loss check. So it would be disability then?

[re2boys]

From IRS Pub 17, Chapter 5:

Other compensation.   Many other amounts you receive as compensation for sickness or injury aren’t taxable. These include the following amounts.

Compensatory damages you receive for physical injury or physical sickness, whether paid in a lump sum or in periodic payments.

Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income.

Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy.

From the last bullet,  your "lost wages" are not taxable.