taxes

[mw76]

hello!

i would like to know if someone receives a settlement from an
insurance co. on an auto accident, does that person have to pay
taxes on the settlement? thank you for any help.

 

[stephenk]

check with a tax attorney in your state. Depending on the state and federal law, typically you owe taxes for settlements that include payment for past loss of wages and future loss of wages. No taxes owed for pain and suffering.

Check with a tax attorney!