Auto insurance settlement tax
Is an auto insurance settlement subject to taxing?
Grace
That’s is an excellent question, Grace.
I believe this really depends on how you do things, Grace. As many of us know, pretty much anything can be taxed. This is why many people choose against the expensive hundred thousand dollar car prize on game shows, because often just the taxes on such a commodity are much more than they can afford. The same sometimes goes for auto insurance settlements. In order for it not to be taxed, the settlement has to be classified as punitive damages. This might be a difficult classification for you to get on your own, so I would suggest that you hire a lawyer who would be able to get that classification for you.
Cheers,
Fashun Guadarrama.
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