Do you have to pay taxes on an insurance claim?

Answer 1

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)