I received a settlement for vehicle loss, as well as full claim recovery reimbursement. how/where do i file this income on tax form(s)

les_irs · ‎March 12, 2023

ShirlynW · ‎March 12, 2023

Would you please clarify the type of loss? There are three specific types of casualty losses described in in IRS Pub. 547:

1. Federal casualty losses,

2. Disaster losses, and

3. Qualified disaster losses.

Since they are treated differently, please tell us which type you had.

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les_irs · ‎March 13, 2023

settlement due to auto accident; vehicle total loss; full deductible reimbursement, also. i have yet to replace the vehicle

PattiF · ‎March 13, 2023

You do not need to file the settlement. It is not taxable. Insurance settlement money is provided to bring you back to the state that you were in before your vehicle was a total loss. You are not taxed on the amount that was meant to make you "whole" again.

@les_irs

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I received a settlement for vehicle loss, as well as full claim recovery reimbursement. how/where do i file this income on tax form(s)