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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4154
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I have received a payment form my insurance company due to

Customer Question

I have received a payment form my insurance company due to an illness. Do I have to pay taxes on this?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I am paying for a clinical illness policy. And the insurance company paid me for the illness. Do I have to pay taxes on the amount that was paid to me?
JA: Is there anything else important you think the Accountant should know?
Customer: If the check was dated 2016. will it be considered as an 2016 income? or will it go by the the deposit date
Submitted: 21 days ago.
Category: Tax
Expert:  PDtax replied 21 days ago.
Hi from just answer. I'mCustomer I'll assist.Generally, if you are paying for disability or similar coverage, payments to you are not taxable.If instead you have limited coverage income replacement, that can be different.Please describe your coverage in more detail, such as the benefit paid, how it is computed, etc. , and I can be more precise.
Expert:  PDtax replied 21 days ago.
Proceeds of an accident and health policy such as many AFLAC policies are not reportable as income so long as you did not deduct the premiums, and so long as this is not an employer provided fringe benefit.Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer