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    niblic8's Avatar
    niblic8 Posts: 2, Reputation: 1
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    #1

    Oct 20, 2007, 11:10 AM
    Tax liability
    What is my income tax liability after receiving an insurance settlement from a car accident and then using almost all of it to pay all the bills?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Oct 20, 2007, 05:22 PM
    It is likely that the insurance settlement is compensatory in nature.

    If so, then NO taxes should be due, UNLESS you are being compensated for lost wages, then the normal range of FICA and income taxes are due.
    RUSTIBRAT's Avatar
    RUSTIBRAT Posts: 2, Reputation: 1
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    #3

    Oct 28, 2007, 08:02 AM
    Comment on AtlantaTaxExpert's post
    The answer was short and to the point where it answered my question
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