0
Yes this is very possible because the amount is replacing wages that you had not yet received and paid any income tax on yet.
So the amount will be subject to income taxes in the year that you receive the amount of lost wages.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Do I need to pay taxes on an insurance claim payment?
No, the insurance settlement is considered compensation for a loss, not income.
What is considered in a factoring structured settlement?
Many factors go into structure settlement. Monetary damages suffered by the victim, including loss of wages and loss of future wages, make up the majority of the settlement. The ability for the company to pay the settlement terms is also a factor.
How much of a company loss can you claim on taxes?
nil
How many years can you claim a loss on your taxes?
three years
Do you pay taxes on the settlement of an accident insurance claim?
You should of course check with your tax preparer or advisor. certain types of paid claims such as Loss of future income may be taxable But In general the answer will be "NO" This is because most claim settlements are compensation for a loss and not considered profit or earned income.
Do you have to pay federal or state taxes on an insurance claim settlement?
For US Federal taxes, it would depend on who was paying the premiums for one thing. If you pay the premiums yourself and the loss is not business related, then no. If your employer pays the premiums or if the loss is business related then maybe. Based strictly on the information given in this question, the answer would be no.
You receive a settlement from a law suit Is that income subject to Federal or State income taxes?
It depends what the issue of the case is about. If the settlement is in a personal injury lawsuit, there are no taxes. This money is strictly compensation for physical injuries. If the settlement is for back-pay or loss of income lawsuit, then there probably will be taxes.
Are taxes paid on money awarded from loss of job because of an age discrimination lawsuit?
Yes they are. The portion of the settlement that is attributed to lost wages is also subject to Social Security and Medicare taxes. The good news is that you may be able to deduct the lawyers' fees without itemizing (as an adjustment to income).
Can you claim a loss from a self directed IRA?
Yes, you can claim a loss from a self-directed IRA on your taxes. If the value of your self-directed IRA decreases due to investment losses, you may be able to deduct that loss on your tax return as a capital loss. It is important to consult with a tax professional or financial advisor for guidance on how to properly report and claim the loss on your taxes.
Are taxes withheld on a car accident settlement?
Yes this could be possible depending on what the settlement amounts would be made for.AnswerNOPE, can't touch them. IRS, Nobody can touch any money you get compensated for personal INJURY(I thought that was your question) after you pay your medical bills and 30-40% attorney fees, the rest is yours= PERIOD. No "child support taken out" Back taxes /IRS- Nada.............Have a great day!!,AnswerIn the United States, Insurance claim settlements (such as life insurance proceeds, personal injuries or property loss) are typically not considered income and are therefore not taxable. Loss settlements of these types that result from an insurance claim are categorized legally as "indemnification" which is simply compensation for your loss. In simpler terms, there is typically no profit or gain involved and therefore no taxable income. As in many things though there is however a grey area. When compensation is for loss of future earnings or wages. Since the future wages would have been taxable when earned. One could construe some portion of such a settlement as taxable. A consultation with your attorney would be advised in such a situation.
How does homeowners insurance protect the mortgagee in case of a loss?
puts their name as a payee on the claim settlement check
Can a claim of loss of income be made on federal income taxes for starting a small business?
Yes, your schedule C can show a loss.
