Is Car Insurance Money Taxable?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaI am not an accountant. Casualty losses are a deductible expense on your form 1040. Insurance company payments are recovery for casualty losses. If you have received a large insurance settlement, I suggest you contact your CPA. If you have had some car repairs done and the insurance company has paid all of some of the expenses, I doubt that will represent any taxable event.Answered on June 25, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! Generally speaking, if you are in an accident, or your car is stolen and the insurance company sends you a check for the costs, that money isn't taxable. Since you are making payments for the insurance coverage, the settlement is seen as reimbursement for your expenses. That said, if you are listing the car insurance as a business expense, then there may be a tax liability. I hope that helps. Thanks for asking!Answered on June 26, 2014flag this answer
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