Question

If I received insurance claim income for an auto-accident injury I suffered, is this insurance claim taxable income that I have to report?

Answer

Your insurance claim income is probably not taxable. If there’s nothing to indicate what the payment is for, it’s likely that it’s meant to cover medical expenses and “pain and suffering.” If this is the case, you don’t have to include the amount in your income.

However, insurance claim taxable income might be an issue and you must include the reimbursement as income if either of these is true:

  • You reported the resulting medical expenses as itemized deductions in a prior year.
  • The funds were designated for something else — Like reimbursement for lost income.

Related Topics

Related Resources

Taxes on Alimony and Child Support

Learn about the tax implications of alimony payments and child support from the tax experts at H&R Block.

Taxes for Flipping Houses

Learn more about flipping houses tax deductions with the help of H&R Block. We break down what expenses you can deduct when flipping a house here.

How To Offset Capital Gains | H&R Block

Understanding how to offset capital gains is a topic that many tax filers avoid. Brush up on key terms and the process with advice from H&R Block tax pros.

For Pro Golfers, Tough Taxes Are Par for the Course

Professional golfer taxes can be complicated and confusing. Learn more about tricky golfer tax issues like travel deductions and residency rules with H&R Block.