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New Member
posted Oct 29, 2019 7:11:17 PM

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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1 Best answer
New Member
Oct 29, 2019 7:11:19 PM

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

3 Replies
New Member
Oct 29, 2019 7:11:19 PM

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

New Member
Oct 29, 2019 7:11:20 PM

thanks! yes it was for personal use.

New Member
Oct 29, 2019 7:11:23 PM

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