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-   -   Automobile Settlement( Is that taxable?) (https://www.askmehelpdesk.com/showthread.php?t=162200)

  • Dec 12, 2007, 08:30 PM
    Coley73
    Automobile Settlement( Is that taxable?)
    Do I have to claim money received from a settlement from an automobile accident, on my taxes.
  • Dec 12, 2007, 10:11 PM
    MukatA
    What does the settlement award say? A part of settlement may be taxable. If it is for damage of the vehicle, only settlement that exceeds the actual cost is taxable. If it is for loss of wages, it is taxable.
  • Dec 13, 2007, 09:23 AM
    AtlantaTaxExpert
    Generally, if the settlement is compensatory (pays for damage), it is NOT taxable UNLESS it replaces taxable wages that were lost due to the accident.

    If the settlement was the result of a court case and includes PUNITIVE damages, then the punitive damages are also taxable.

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