If I receive a large sum of money from the insurance company, do I have to pay any tax. If I do, how much do I pay? How do I pay it? When do I have to pay it?
I will give 10 pts for the best answer!
2006-11-07 12:38:48 · 9 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yeah unless the money Is delt under the table. Youll have to pay a tax on it, the ammount really depends on how much youll be reiciving
2006-11-07 12:47:07 · answer #1 · answered by RWAR. 4 · 0⤊ 0⤋
It depends on the type of insurance and the reason you are recieving it. For example, if it is life insurance proceeds paid for by reason of death you do not pay tax but if you cash in on a life insurance policy and receive the cash surrender value you will pay tax on it.
If it is a taxable distribution, the amount of tax you will be charged depends on your other income and deductions on your tax return to arise at your marginal tax rate. You will pay taxes at the end of the year when you file your tax return and in some cases you can elect to have witholdings from it.
Need more details to really be able to answer.
2006-11-07 12:46:40 · answer #2 · answered by kathi 2 · 0⤊ 0⤋
The only reason you received a check from the insurance company would be because you made a claim for damage in an accident or the motor home was stolen. The company is not going to give you more than your loss therefore the check is not taxable it is a reimbursement for your loss. Because you have been reimbursed by the insurance you can not claim a casualty loss on you tax return unless the amount of loss in excess of the insuranec check equals 10% of more of your adjusted gross income.
2016-05-22 09:01:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
When you file your next tax return you will need to claim it ,if it over a certain amount . Best for you to make sure with the person that will do your Taxes to be on the safe side .
2006-11-07 12:41:11 · answer #4 · answered by silverearth1 7 · 0⤊ 0⤋
It depends on the kind of Insurance coverage.Life insurances are not taxable.
You should contact the insurance company to get for information.
2006-11-07 12:46:06 · answer #5 · answered by Love&Confusion 3 · 0⤊ 0⤋
You do not have to pay tax on insurance payments.
2006-11-07 12:46:24 · answer #6 · answered by Jay 6 · 0⤊ 0⤋
That depends on why you are getting the money.
For example, if it is a payment for life insurance, than no.
But, if it is a refund for medical expenses that you deducted on your itemized deductions schedule, than yes.
Basically, the idea is that if the payments for the insurance were deducted for taxes (i.e. medical) than benefit payments received are taxable. Likewise, if the payments are not deductible (i.e. life insurance) than benefit payments are non taxable.
2006-11-07 13:02:52 · answer #7 · answered by D D 2 · 0⤊ 0⤋
What was the money for? Generally, though, you do not have to pay.
2006-11-07 12:48:49 · answer #8 · answered by Frogface53 4 · 0⤊ 0⤋
No u do not i do not and i sometimes get large bills
2006-11-07 12:41:09 · answer #9 · answered by Bbarbie325 2 · 0⤊ 1⤋