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New Member
posted Aug 8, 2024 12:06:25 PM

Is intrest earned from an insurance claim taxable?

A fire destroyed my home. While I was waiting for my insurance company to determine the damage, their initial checks sat in a money market account. It gained interest. I received a 1099 INT from my bank. Is this taxable interest or nontaxable?

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2 Replies
Level 15
Aug 8, 2024 12:15:46 PM

The interest earned in the Money Market account and reported to you on a Form 1099-INT is taxable interest to be reported on your tax return.  Why you received the interest is not relevant.

New Member
Aug 9, 2024 10:30:53 AM

Thank you. Somehow, it just does not seem right that I should pay taxes on something that I had to hold on to for my insurance company because they could not get their act together. But I really appreciate you helping me out with the answer.