Income Tax
Income Tax
When filing an income tax return, do I need to include insurance refund from auto accident?
When filing an income tax return, do I need to include insurance refund from auto accident? My car was total loss. My insurance pay off my loan for the car and gave me back $6000 after the payoff. Do I need to report this when filing my income tax return?
Assuming that they paid you the fair market value of the car, and that that was less than you paid for it in the first place, you do not need to claim that on your tax return.
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