tag:blogger.com,1999:blog-5465015914589377788.post2036227215929607423..comments2024-02-17T11:07:06.232-05:00Comments on Michael James on Money: Taxing Insurance SettlementsMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5465015914589377788.post-9117387628686958912011-10-31T10:43:18.684-04:002011-10-31T10:43:18.684-04:00@Mark: I think Sam's situation is simple enou...@Mark: I think Sam's situation is simple enough that he can figure this out from the information in the link you provided. Thanks very much.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-67691146692152723352011-10-31T10:33:20.980-04:002011-10-31T10:33:20.980-04:00Michael, unfortunately this is a complicated area ...Michael, unfortunately this is a complicated area and I cannot proivde a simple answer without reviewing the actual situation.<br /><br />Preet has brought up an applicable provision of the Act. Here is a blog link on this topic. <br /><br />http://ottawalawyersconnection.com/2011/06/01/taxation-of-damages-what-a-difference-it-can-make/<br /><br />Sorry, I cannot provide you a quick answerThe Blunt Bean Counternoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-82313827582645649702011-10-31T10:17:23.655-04:002011-10-31T10:17:23.655-04:00@Preet: Thanks. Upon looking at the settlement l...@Preet: Thanks. Upon looking at the settlement language again, it doesn't exactly say that the settlement would be taxable to Sam, but that it might be. So maybe this is just some weasel wording to cover themselves as opposed to an actual assertion about whether the money would be taxable.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-34276761047223698452011-10-31T09:54:55.795-04:002011-10-31T09:54:55.795-04:00Better to get a professional tax expert, but in th...Better to get a professional tax expert, but in the meantime:<br /><br />He most likely won't have to pay tax so long as the award qualifies as "special" or "general damages" for personal injury or death. Out of pocket medical would be special, and pain and suffering would be general (there are more than just those for each).<br /><br />So long as that is the case, the settlement will be EXcluded from income.WhereDoesAllMyMoneyGo.comhttps://www.blogger.com/profile/09185007666460707356noreply@blogger.com