My disable daughter receive payments from an auto accident and pay my wife and me for attendant care services. Is the money taxable?

[user20568]

The insurance company use to send the attendant care checks to my wife and me, but once my daughter turned 18 they send it to her and said she needs to pay us. The insurance company have never sent us a 1099-misc.

[CarolynM · Accepted solution]

No, settlement funds used for medical care are not taxable.

Follow this link for more information: IRS on Lawsuits

I am sorry your daughter was injured so badly.