daliashehata
Level 2
06-22-2020
08:13 PM
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Client was in an auto accident and received $6,000 from his insurance. A third of the money went to the doctor, a third went to the lawyer and a third went to the client. He ended up getting only $2,000, but the whole check was in his name. Is the whole amount taxable or does he only pay taxes on the $2,000?
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Level 15
06-22-2020
08:29 PM
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Settlements for physical injury arent generally taxable...did he get a 1099 or something?
https://www.irs.gov/pub/irs-pdf/p4345.pdf
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