Tax question..

[ScottFromGA]

back in 2005, I recieved an insurance settlement for a car crash I was involved in. Today, I recieve a letter from the IRS showing that I owe a certain amount of money. I'm not aware of a insurance settlement being shown as income, but then again...I am young and still do not know these things.

Do I have to pay the IRS back pay for not showing an insurance settlement as income?

[drjoek]

Im no tax expert but if the insurance company sent you a 1099 for the money it is considered income.If they sent you money to do a repair I wouldnt think so.If the IRS says you owe don't ignore it THEY will NOT go away

[ScottFromGA]

Im no tax expert but if the insurance company sent you a 1099 for the money it is considered income.If they sent you money to do a repair I wouldnt think so.If the IRS says you owe don't ignore it THEY will NOT go away

they did not send me a 1099. all i recieved from them is a check written to me for my settlement.

from what i'm finding online, this should not be taxable income due to personal injury.

[Crispy123]

On the IRS website (http://www.irs.gov/taxtopics/tc422.html) accident and health insurance proceeds are clearly not taxable. I would contact your local office (http://www.irs.gov/localcontacts/index.html) and talk to someone. Last year I had all sorts of funky stuff with Hybrid credits, selling a home, childcare credits etc. I got a nasty gram saying I owed money, I called them up and cleared everything up no problems.

[ScottFromGA]

On the IRS website (http://www.irs.gov/taxtopics/tc422.html) accident and health insurance proceeds are clearly not taxable. I would contact your local office (http://www.irs.gov/localcontacts/index.html) and talk to someone. Last year I had all sorts of funky stuff with Hybrid credits, selling a home, childcare credits etc. I got a nasty gram saying I owed money, I called them up and cleared everything up no problems.

thanks CPW...I will take it to my tax person tomorrow to resolve this.