Injury settlement ?
I was finally awarded a settlement in the accident I was involved in 1 ½ years ago where all three trucks were totaled. I was hit from behind while stopped at a red light. Not a lot of $$$ but is it taxable? Most of you know I live in NorCal.which has a state income tax. I have contacted my CPA and she says she is “pretty sure” it isn't taxable. Her answer reminds me of the commercial where the guy is “pretty sure” he is sober enough to drive. I have checked the internet to no avail. I am retired so I have no lost wages to declare. I am locked in either way, just would like to know….Thanks, Eddie life member VFW & NRA BTW we got 28 inches of snow in that last storm and it is 18 degrees as I type this
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my wife has collected a couple of rear end accidents on her car, one for $10,000 and another for $7,000, she just put them in the bank (these were personal injuries). You might want to be on the lookout for anything you signed to the insurance company, called a subrogation agreement….which entitles the insurance company reimbursement for medical charges.
where i live there is no-fault insurance, so if an uninsured driver hits you, your insurance pays the medical claim. I do not believe it is income in any way.
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Not taxable. Its a reimbursement, not income.
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Thank you Sir, I hope so, but this is Kalifornie where abnormal is the normal.
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Sorry for such a late response, but I just saw this since I rarely go to the forums anymore. Federally, any claim/award due to an injury is not taxable. Any compensation designated as “punitive damages” would be taxable.
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Thank you, You have confirmed what I learned from my research. I have no punitive damages, only injury and medical. Thank you again, Eddie
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Generally, monies received from PI Settlements have been considered exempt from taxable income. There are some exceptions, so you should talk to your atty. to be sure.
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