Can I file unearned income from car insurance money and have 3 dependents?

[margeallison]

Yes it is for lost wages so does that mean I can file then?  When I went through the taxes last year it said I couldn't file with unearned income from my accident.  Made me lose $4K in dependants I took care of last year.  So my accident cost me even more than losing my job and health.  SO how do I account for the tax payment when I only received 85% of my wage but no taxing was done on the pay from State Farm.

[SweetieJean · Accepted solution]

Do you mean money from being in a car accident?  Unless it's for lost wages, it's not reportable.

[margeallison]

Yes it is for lost wages so does that mean I can file then?  When I went through the taxes last year it said I couldn't file with unearned income from my accident.  Made me lose $4K in dependants I took care of last year.  So my accident cost me even more than losing my job and health.