Question

Are insurance proceeds taxable?

I was in an accident recently where the other driver was at fault. When I get the payout for the damages to my vehicle, will I have to report them as part of my income? 

 

 

Sep 24, 2019 Dudley, MO

Answer
Ross Martin

Sep 24, 2019

Thanks for your question. In general, insurance proceeds are not taxed. This is because insurance payouts are not actually making you money, but bringing your back to your previous status, also known as "making you whole." 

This goes for bodily injury and property damage payouts, and is the same for both home and auto insurance. If you have any further questions, please reach out. 

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