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    5. DO YOU PAY TAX ON ACCIDENT CLAIMS
    DO YOU PAY TAX ON ACCIDENT CLAIMS

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    0  Views: 746 Answers: 1 Posted: 12 years ago
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      For the USA.


      The Internal Revenue Service classifies "compensatory damages" as income you receive for a physical injury as "other compensation" and generally holds that these forms of reimbursement are not taxable. Specifically IRS Publication 525 "Taxable and Nontaxable Income" states "Many other amounts you receive as compensation for sickness or injury are not taxable."


      Read more :http://www.ehow.co.uk/info_7758768_do-accident-claim-settlement-income.html

      12 years ago. Rating: 7
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