I sued my insurance company over failure to pay a Hurricane Katrina claim and we settled before going to trial.
2007-09-11 09:24:28 · 8 answers · asked by Durack 2 in Business & Finance ➔ Insurance
Not usually, as there's no net increase.
2007-09-11 10:34:06 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
I have been asking my accountant about this same thing. He says that my "loss of wages" that I get back would be taxable but my puinitive damages from pain and suffering would not be. I have to have the checks distributed as 2 separate ones, or at least have it itemized. If this isn't done, I have to pay tax on it all since it is my responsibility to divide them for tax purposes.
2007-09-11 10:09:57 · answer #2 · answered by njunprincess 4 · 0⤊ 0⤋
Proceeds from an insurance settlement in this case are not taxable income since it is a casualty loss. However, you cannot collect the loss and claim it under your taxes. Please consult an accountant for additional information.
Good luck with your rebuilding!
2007-09-11 09:38:12 · answer #3 · answered by Margarita D 6 · 1⤊ 0⤋
You would need to call an accountant, but Soxfan is incorrect in saying the only money you can receive that isn't taxable is life insurance--any money inherited is also not taxable.
2007-09-11 09:33:08 · answer #4 · answered by legalchick791 5 · 0⤊ 1⤋
I'm no CPA, but I'm guessing that if you claimed the loss on your tax return, you have to count the insurance proceeds as income to be applied towards that loss
2007-09-11 09:33:17 · answer #5 · answered by Jonathan B 4 · 0⤊ 0⤋
it is taxable income. the only $ that is not taxable that you can receive are life insurance proceeds
2007-09-11 09:29:16 · answer #6 · answered by selery222 4 · 0⤊ 0⤋
I thought they were not. I know injury claim settlements are not.
2007-09-11 10:03:19 · answer #7 · answered by mamatohaley+1 4 · 0⤊ 0⤋
The attorney you used should have been able to answer that for your type of case .
How come he doesn't know ?
?
2007-09-11 09:30:38 · answer #8 · answered by kate 7 · 0⤊ 0⤋