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austinjames14
New Member

I was in an accident and recieved a settlement that paid my medical expenses and also gave me extra money. Do I claim that money or add those medical expenses to my taxes?

 
2 Replies
KarenL2
Level 5

I was in an accident and recieved a settlement that paid my medical expenses and also gave me extra money. Do I claim that money or add those medical expenses to my taxes?

No.  You will generally neither claim the income nor the expenses.  However, if part of the settlement is for mental anguish or punitive types of damages, that portion must be included as income. (see below)  Since the settlement for injury is not taxed, you cannot take a tax deduction for the medical expenses paid by those fund.

Are legal settlements taxable?

https://ttlc.intuit.com/replies/4787698


austinjames14
New Member

I was in an accident and recieved a settlement that paid my medical expenses and also gave me extra money. Do I claim that money or add those medical expenses to my taxes?

If a portion (not sure of the exact amount) of the settlement money was for loss of wages, do I include this in my taxes?
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