I received a large sum of money ($12,000) from my motor vehicle insurance company. Do I have to pay any taxes? If I do, then how much? When do I pay? How do I pay?
i will be rewarding 10 pts. for the best answer!!!
2006-11-07 13:23:15 · 11 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Insurance settlements are non-taxable
2006-11-07 13:32:38 · answer #1 · answered by Anonymous · 1⤊ 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.
2006-11-07 22:46:15 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
The correct answer to your question may depend on information you have not provided. If this was an insurance settlement for an accident to pay for personal injury or damage to a vehicle you would not pay taxes on that amount unless you also received funds from another source for the same injury or damage.
2006-11-07 14:05:36 · answer #3 · answered by ? 6 · 2⤊ 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.
2016-05-22 09:11:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Your information is incomplete. If some of the money is for lost wages that would be taxable. Personal injury, medical bills and pain and suffering rewards are tax free. Damage to your personal auto would be tax free but if you have depreciated your auto for business use you may have a gain.
2006-11-08 06:59:02 · answer #5 · answered by daoco 4 · 0⤊ 0⤋
Typically not. However if any of the money you received is for lost wages (wage replacement) that would be taxable.
Any taxable income will be reported on your tax return at the end of the year. If any is taxable, it "might" be advisable to send in a quarterly estimate.....but I can't determine that without knowing all of your other circumstances.
2006-11-08 06:52:05 · answer #6 · answered by Dee 4 · 0⤊ 0⤋
You don't make it clear what the money was for. If it was payment for damage to your vehicle then it is not taxable. If it was a refund of overcharged premiums then it is not taxable. If it was a loan then it is not taxable.
2006-11-08 02:44:40 · answer #7 · answered by acmeraven 7 · 0⤊ 0⤋
NO, You don't have to pay taxes on this, just take the money and run!!
Enjoy !
2006-11-07 19:04:59 · answer #8 · answered by You are loved 5 · 0⤊ 0⤋
i wouldnt think so because u won that or whatever but i would do what i want with that money just because its urs u should do what u want with it unless u have to pay taxes
2006-11-07 13:26:44 · answer #9 · answered by pinkfashiongirlygirl 1 · 0⤊ 1⤋
You have to pay taxes on any amount over $9,999 as for the amount of taxes it varies by state. i would contact your local tax preparer as to how and how much.
2006-11-07 13:36:01 · answer #10 · answered by greeneyesntx 3 · 0⤊ 3⤋