Do you have to pay income taxes on insurance settlements?

Question

My husband has aflac insurance and we received money for our son being in a NICU for a week or so. Do we need to save aside money for income taxes that will be taken on that money? Or is it not taxable?

Answer 1

If it was reimbursement for covered expenses, then no you don't pay tax on it - it's reimbursement, not income.

Good luck - I hope your son is OK now.