👉 Are Insurance Settlements Taxable?
The answer is quite simple: Yes, they are indeed taxable. However, there's a catch. If you're dealing with insurance settlement claims from an accident where the injured party is not considered a substantial loss, your payments may be subject to taxes. Consider this example sentence: "Insurance settlements can be tricky business! For those who weren't physically damaged in their accidents but still lost money on repairs, they are taxed as taxable income. That means if you're paying for repairs that cost more than what the policy covers, you have to pay a portion of that amount back!"
