If I received insurance claim income for an auto-accident injury I suffered, is this insurance claim taxable income that I have to report?
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.
If you make a profit on the sale of your home, the gain may not be taxable. Learn more about the tax implications of selling a house with the experts at H&R Block.
Learn more about the tax implications of the Traditional, Roth and Spousal IRA from the tax experts at H&R Block.
Need to know how to report the sales of stock on your taxes? Learn more from the tax experts at H&R Block.
If you’ve contributed too much to your IRA for a given year, you’ll need to contact your bank or investment company to request the withdrawal of the excess IRA contributions. Depending on when you discover the excess, you may be able to remove the excess IRA contributions and avoid penalty taxes.