Is the amount received from an accident insurance settlement taxed as income?

[sbever]

What is the name of your state? IN

Is the amount received from an accident insurance settlement taxed as income?

Thank you,

 

[LdiJ]

What is the name of your state? IN

Is the amount received from an accident insurance settlement taxed as income?

Thank you,

Generally no....however there can be partial exceptions if any of the settlement was considered to be punitive in nature, or covered lost wages. See a tax professional with your paperwork in hand.

 

[tranquility]

Or for medical bills deducted in a previous year, or...other things. You need to take the settlement agreement to a tax professional.