Typically, the recipient of a claim payment is not required to report it as income. If the company is paying you for damages or injuries most likely it is not taxable. If you are collecting payment from a company for work done then it is income and the company should provide the relevant tax forms at the end of the year.
1) My arm is broken in an accident and the responsible person's insurance pays me $500 <---- not income
2) I lone my extra car to my mother because of an accident and charge 10.00 per day that the insurance reimburses (Mom's or the responsible person's) <------ income (10-99 tax form expected)
In the USA you do not pay taxes on the Proceeds from an Insurance Claim.
income taxes ? no insurance payments are exempt
You do not generally have to pay taxes on an insurance settlement claim. You can check with your tax firm or accountant for the rules specific to your state.
No, the insurance settlement is considered compensation for a loss, not income.
If you are an individual who receives the life insurance proceeds, you may not have to pay any federal income taxes on the benefits. If the life insurance policy names a trust as beneficiary, the trust may be subject to estate taxes.
No, Hazard Loss compensation is not considered taxable income.
No, they will pay the claim to you and then you will be able to do what is fiscally responsible.
My child has to pay for lunch can I claim that on my taxes?