Insurance payment: pain & suffering

Posted by Vic Dura on October 1, 2009, 11:39 am

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Hello,

If I were to receive a payment from an someone's liability insurance
company for "pain & suffering", would that be taxable on my form 1040?
If so, does it go in line 21?

Thanks,
--
At first they laugh at you, then they ignore you, then they fight you, then you
win.

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Posted by Stuart A. Bronstein on October 1, 2009, 11:45 am

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> If I were to receive a payment from an someone's liability

> insurance company for "pain & suffering", would that be taxable

> on my form 1040? If so, does it go in line 21?

If it's actually for pain and suffering, it's not taxable. If it's
for something related (e.g. lost wages, lost opportunity, punitive
damages) it is taxable.

--
Stu
http://downtoearthlawyer.com

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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
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Posted by Arthur Kamlet on October 1, 2009, 2:08 pm

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>> If I were to receive a payment from an someone's liability

>> insurance company for "pain & suffering", would that be taxable

>> on my form 1040? If so, does it go in line 21?

>If it's actually for pain and suffering, it's not taxable. If it's

>for something related (e.g. lost wages, lost opportunity, punitive

>damages) it is taxable.

However, if the award is based purely on emotional and not physical
pain and suffering, not at all unheard of, absent physical injury, the
settlement is taxable.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

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<< The foregoing was not intended or written to be used, >>
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Posted by Stuart A. Bronstein on October 1, 2009, 3:15 pm

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kamlet@panix.com (Arthur Kamlet) wrote:

>>> If I were to receive a payment from an someone's liability

>>> insurance company for "pain & suffering", would that be

>>> taxable on my form 1040? If so, does it go in line 21?

>>If it's actually for pain and suffering, it's not taxable. If

>>it's for something related (e.g. lost wages, lost opportunity,

>>punitive damages) it is taxable.

> However, if the award is based purely on emotional and not

> physical pain and suffering, not at all unheard of, absent

> physical injury, the settlement is taxable.

Yes, thanks. I'd forgotten about that. It used to be that anything
related to personal injuries, even punitive damages, were tax free.
That has changed.

--
Stu
http://downtoearthlawyer.com

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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
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Posted by Vic Dura on October 1, 2009, 3:25 pm

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On Thu, 1 Oct 2009 14:08:18 EDT, kamlet@panix.com (Arthur Kamlet)
wrote Re Re: Insurance payment: pain & suffering:

>>> If I were to receive a payment from an someone's liability

>>> insurance company for "pain & suffering", would that be taxable

>>> on my form 1040? If so, does it go in line 21?

>>If it's actually for pain and suffering, it's not taxable. If it's

>>for something related (e.g. lost wages, lost opportunity, punitive

>>damages) it is taxable.

>However, if the award is based purely on emotional and not physical

>pain and suffering, not at all unheard of, absent physical injury, the

>settlement is taxable.

What if the award is for reimbursement of out-of-pocket expenses
resulting from an accidental death?
--
At first they laugh at you, then they ignore you, then they fight you, then you
win.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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