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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.

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New Member

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

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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3 Replies
New Member

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

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

View solution in original post

New Member

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

thanks! yes it was for personal use.
New Member

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

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