I was paid $14332.45 in an auto injury insurance settlement fairly recently this year. I have basically no other reportable earned income this year since i was unemployed(under 10 dollars). I was wondering how to report that previously mentioned settlement money on my taxes, whether it qualifies as income, and whether i need to pay taxes on it or report it at all.
The listed reasons are listed in lawsuit specifically as:
physical injury
emotional distress and mental anguish resulting from the injury.
Most of the money received, 14,100 dollars of the 14332.45 paid, was for emotional and mental anguish resulting from injury.
The 14,332.45 received was what was left over of $30,000 after all the bills (lawyer and medical) were taken out.
Just hoping that more exact info could help you give me more exact details about whether the money is taxable or must be reported.
i called a tax service that offers free consultation and the 1st guy said it had to be reported as income and be paid taxes on and the guy he transferred me to said i'd have to report it as income but may not have to pay anything on it and i'm still not sure what i have to do with it.
it's hard to find the usual free help such as vita etc for this stuff right now due to all that's going on so i figured i'd ask here.
thank you!