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car accident with lawsuit

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M

mbbc1

Guest
I was involved in a car accident with a tractor trailor in North Carolina. The trucker side swiped me and totaled my car and carsed injuries. He was ticketed. I then sued his insurance company and received a lump sum to pay off my medical bills and for lingering pain.

My question: I now live in Florida and am wondering if I need to claim this sum on my taxes or does the insurance company have to claim? Please help. Thank you
 


I AM ALWAYS LIABLE

Senior Member
mbbc1 said:
I was involved in a car accident with a tractor trailor in North Carolina. The trucker side swiped me and totaled my car and carsed injuries. He was ticketed. I then sued his insurance company and received a lump sum to pay off my medical bills and for lingering pain.

My question: I now live in Florida and am wondering if I need to claim this sum on my taxes or does the insurance company have to claim? Please help. Thank you
My response:

Settlements for General Damages, Property Damage and Medical Expenses are non-taxable. The only parts of a settlement that could be taxable are those portions received for lost earnings and lost earning capacity.

You're in the clear as far as Uncle Sam is concerned.

IAAL
 
M

mbbc1

Guest
Thank you so much for the info. You have definately made my day! Thank God the govt. can't get a hold of my mula. Thanks again mb
 

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