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do I have to pay taxes on accident claim?

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azcamaro

Junior Member
What is the name of your state? AZ

Hi, I am about to receive a settlement from an accident in which a uninsured motorist hit me and I had injuries. My question is will I have to pay any income tax on my settlement? If I do, am I liable for the total including Dr. & Lawyers share or just my share? (both the dr & lawyer are getting more than I am :(
Thank you for your time.
 


ecmst12

Senior Member
Generally not, since it is considered a replacement of money you lost and not actual income. But ask your lawyer to be sure.

A search of this site would have found you this information, also.
 

crsngna

Junior Member
Florida

I have the same question but I live in Florida. My 14 year old daughter and I received separate Insurance checks as compensation from a car accident that we were in. The insurance company of the person who hit me is the one who sent us the checks. Do either of us have to pay taxes on this money or is it all ours?

Thank you for your help!!!
 

mikeb7418

Junior Member
I do believe you would have to pay taxes on any portion of your claim that represents lost income or wages (if applicable).
 

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