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Question

I received a 1099 from my Insurance Company for payments they made to me and my wife for the 24 hour care he requires from a total disability accident. Is this taxable?

Submitted: 575 days and 19 hours ago.
Category: Tax
Value: $15
Status: CLOSED
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Optional Information

Optional Information:
Howell, Michigan

Posted by Marvin,EA 575 days and 17 hours ago.

Answer

Hello and thank you for using Just Answer. You would file Sch. C to report the 1099 income. You would also report on Sch. C any expenses you had to pay for care he requires (foods, other expenses)

575 days and 17 hours ago.

Reply

It is my understanding and has been for several years that this type of income, from a catastrophic auto claim, is not taxable. We have been receiving payments for several years and until this year have not received a 1099. There was a posting to this web-site indicating that the IRS has made a determination, in letter form, indicating that this type of income is unintended and therefore is non taxable.

Accepted Answer

This income, 1099, was report to the IRS for 2007. You have to go to the insurance company as why they issues a 1099 for 2007. The insurance company would have to contact the IRS and cancel the 1099 as taxable income.

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Expert: Marvin,EA
Pos. Feedback: 98.5 %
Accepts: 1319
Answered: 4/11/2008

Enrolled Agent

10 years self employed , Income Tax Preparation & Representation

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