i recived a settlement check from a car accident i was in in january, do i have to pay taxes on that money?
like do i have to put it as xtra income!
it was only 6,500.00..
do they decuct it from my initial refund? How does that work!
2006-11-06 17:26:57 · 5 answers · asked by natalie & danny 2 in Business & Finance ➔ Taxes ➔ United States
this settlement came from a lawyer, i took my isurance to court!
2006-11-06 17:58:06 · update #1
You do not have to pay taxes on an insurance settlement. The money is meant to indemnify you. However if you decide to invest it you will have to pay taxes when you collect dividends. But if you are going to repair your vehicle or anything like that you are ok.
I have an accounting degree and a license in P & C insurance. This topic has been brought up several times!
2006-11-06 17:41:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
a value accountant regularly analyzes the cost of something to how a lot it relatively is bought for. A tax accountant does taxes, and an accountant does particularly a lot each and every thing to do with accounting, which contain value and tax.
2016-10-15 11:32:49 · answer #2 · answered by ? 4 · 0⤊ 0⤋
If you claimed a casualty loss related to that accident, and later received a settlement check that you forgot to amend you return or include in gross income. Then they might say something about that.
2006-11-07 08:02:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Settlements from personal injury cases are tax free. If the settlement is from any other situation check with your CPA to see if it is taxable.
2006-11-06 22:47:05 · answer #4 · answered by waggy_33 6 · 0⤊ 0⤋
no you do not include this as income on your tax return. and no, it does not affect your refund in any way.
2006-11-06 18:07:56 · answer #5 · answered by tma 6 · 0⤊ 0⤋