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posted Mar 10, 2024 3:09:18 PM

How do I enter accident insurance payouts as income?

My wife broke her foot and my employer paid accident insurance paid out $2875 as a lump sum benefit. I did not receive any taxable income statements from the insurance company, but according to my research, it is considered taxable because the premium was employer paid. I just can't figure out how to enter the income in Turbo Tax.

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1 Replies
Expert Alumni
Mar 10, 2024 4:40:57 PM

It sounds like your wife received a short-term disability payment.  Before adding anything to your tax return, you need to determine whether or not the amount your wife was paid was included in her W-2.  Short-Term disability payments are often included in an employees wages in box 1 of their W-2.  Give that your wife did not receive a Form 1099-R reporting the payment, it is very likely it was included in her W-2 wages.