What is the name of your state? Minnesota
My wife just received a lump sum insurance settlement for "pain and suffering" from an accident she was in. (the accident was not her fault) The settlement was from the other parties insurance company.
My question is: Is this settlement considered income and will we need to pay income taxes on it? If so, approximately how much would the taxes be?
My wife just received a lump sum insurance settlement for "pain and suffering" from an accident she was in. (the accident was not her fault) The settlement was from the other parties insurance company.
My question is: Is this settlement considered income and will we need to pay income taxes on it? If so, approximately how much would the taxes be?