twcarter1
New Member

My daughter received a payout from insurance for her car that was totalled by hail, is that considered income?

money received by insurance co. for totalled car was invested in 2014.

fuzzy
New Member

Getting started

If the car was strictly for personal use, the insurance proceeds are not taxable and are not reported on her return

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twcarter1
New Member

Getting started

thanks! yes it was for personal use.

Getting started

The insurance payout is not income.  If the money was invested and earns dividends or interest, those earnings are taxable.