Anyone got an answer?

Discussion in 'General OFF TOPIC' started by jdgreen454, Mar 17, 2009.

  1. jdgreen454

    jdgreen454 Member

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    I was involved in a bike accident in Oct 06. I'm looking at getting $25000 from the insurance comp of the guy who hit , and $75000 from the insurance comp I was insured with at the time. My question is will I have to pay taxes on this money? I have read that if its a personal injury lawsuite that the money is tax free. Even though I healed up fine (broke my right femur and knee and left tibula/fibula), does this classify as personal injury? All of the medical costs were covered by the other guys insurance company. Just wondering if anybody on here has dealt with this.
     
  2. Duffer

    Duffer Active Member

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    My wife and daugther have both had insurance settlements from accidents and did not have to pay any taxes. That said, consult your favorite tax professional to make sure as I can not afford your bail if I'm wrong. (Yeah, it happens)lol
    Sorry to hear about your accident. Hope you're up and riding again.
     
  3. STEVE07

    STEVE07 Well-Known Member Staff Member Super Moderators

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    I don't know where you live,but here in Ontario insurance settlements are tax free
     
  4. T wrecks

    T wrecks Junior Member

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    ...same here.
     
  5. Ridge

    Ridge Member

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    Tax free money even here in California
    Every thing else is heavy taxed Thanks Terminator.
     
  6. jdgreen454

    jdgreen454 Member

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    Well I just hope its the same here in Michigan. And yeah, bought another bike shortly after the accident.
     
  7. Davidw2415

    Davidw2415 Senior Member

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    I got a workmans comp settlesment a few years back and did
    not have to pay tax.
     
  8. walleye

    walleye Junior Member Contributor

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    I would ask your accountant or a local tax preparer. Nothing against anyone here but why not ask the pro's and be certain. :D
     
  9. Skratch

    Skratch Active Member

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    I was involved in a head-on with a drunk driver a little over 10 years ago. Also in the car was my wife and two kids. No one died but we were pretty messed up with alot of broken bones etc.

    No. No taxes on this money. It's not income. Its a medical/pain and suffering settlement. Don't know where you're from, but I think its a pretty consistent law. (we received approx. $150,000 among all of us)
     
  10. hobo55

    hobo55 Active Member

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    Not a pro but it may depend on weither it was for pain and suffering (not taxed ) or lost wages (taxed) . Just what I was toldd though. Good luck.