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.
What is a capital gain distribution? Learn more about form 1099-Div Box 2A and get tax answers at H&R Block.
What is the cost basis of stock and other investments? Learn more about calculating the basis and get tax answers from H&R Block.
Generally, a wash sale is what occurs when you sell securities at a loss and buy the same shares within 30 days before or after the sale date. Wash sale rules are designed to prevent investors from creating a deductible loss for the purpose of offsetting gains with only a short interruption in owning the security.
Does your job pay cash without withholding taxes? Learn how to pay income tax with cash wages at H&R Block.