turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Is this considered taxable income?

My husband was involved in a car accident and was unable to work for a few months, he was receiving a wage loss and a household services check from the insurance company. Should I be receiving a form from the insurance and Is this considered taxable income?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
DeniseF1
New Member

Is this considered taxable income?

It really depends on what type of payments they were. Please see the below to determine if you payments are taxable. 

Workers' compensation benefits are not normally considered taxable income on your federal or state return. There is an exception when you receive both workers’ compensation and Social Security (or Railroad Retirement) benefits and part of your workers' compensation reduces your Social Security, that part may be taxable.

Disability paid by an insurance company for lost wages, loss of limb, loss of sight (etc.) may or may not be taxable, depending on circumstance:

  • If the premiums were paid by your employer and were not included in your taxable income, the disability is taxable.
  • If you paid the premiums out of your own pocket or with payroll deductions that came out of your after-tax income, the disability is not taxable.
  • If you and your employer jointly paid the premiums, only the disability amount covered by your employer's payments are taxable.

https://ttlc.intuit.com/questions/3468730-are-lost-wages-checks-taxable

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question