I was in an accident. The attorney sent me a 1099-Misc for the proceeds I received from my injuries as if it was income.Why are proceeds from an accident shown as income?

My question is clear. I was in an auto accident. I received a settlement for my injuries from a law firm. The law firm sent me a 1099-Misc as if this is income I need to declare. Do I have to pay taxes on a settlement from an auto accident?

345

Level 15

Jul 31, 2021 9:24:49 AM

As long as you did not deduct medical expenses the settlement is not taxed. See here for how to handle this in TurboTax.

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/do-i-need-to-claim-an-insurance-settlement-from-a-car-accident/00/317559

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I was in an accident. The attorney sent me a 1099-Misc for the proceeds I received from my injuries as if it was income.Why are proceeds from an accident shown as income?