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margaretta003
New Member

Car maker compensated me money due to multiple repairs on my vehicle-do I declare this

my brand new car was towed 4x times, the car maker compensated me a portion of my payments-$8,500 do I declare this on my taxes?
1 Best answer

Accepted Solutions
TomD8
Level 15

Car maker compensated me money due to multiple repairs on my vehicle-do I declare this

A partial refund of car payments that you made is not taxable income.  That's because you've already paid taxes on that money.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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4 Replies
Critter
Level 15

Car maker compensated me money due to multiple repairs on my vehicle-do I declare this

Did they send you a tax reporting form 1099-misc ?    And if they did what box is the amount in ?
margaretta003
New Member

Car maker compensated me money due to multiple repairs on my vehicle-do I declare this

They did not
Critter
Level 15

Car maker compensated me money due to multiple repairs on my vehicle-do I declare this

If they do not send a tax reporting form then you don't need to file it ... if this is for 2017 then i would ask them if they will send a form.
TomD8
Level 15

Car maker compensated me money due to multiple repairs on my vehicle-do I declare this

A partial refund of car payments that you made is not taxable income.  That's because you've already paid taxes on that money.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

View solution in original post

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