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New Member
posted Mar 12, 2023 11:22:40 AM

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)

0 3 853
3 Replies
Level 7
Mar 12, 2023 2:09:47 PM

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.

New Member
Mar 13, 2023 5:51:02 PM

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

Expert Alumni
Mar 13, 2023 6:08:36 PM

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