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Settlement on Auto Accident ?

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P

patticakes

Guest
We have just reached an agreement on settlement on auto accident...does anyone know if I will need to pay income tax on the settlement amount ??
 


I AM ALWAYS LIABLE

Senior Member
My response:

Only on the part that constitutes reimbursement of lost wages or earning capacity, if any.

Everything else, property damage, pain and suffering, costs, etc., are NOT taxable.

IAAL
 

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