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Question
I was injured as a passenger in a car when a diesel hit us. I was compensated (so far) 468.00 for personal belongings ....like my clothes and such; I got a 1099 from the lawyer who handled it (& it appears that it may not be filled out correctly), so, am I responsible for income taxes on that money?
Hi Fred,
You should not have any taxes due for reimbursement of damaged personal property. In most cases there will be no taxes due even for a pain and suffering settlement depending on how it is structured.
You will need to contact the attorney and ask him/her why you received a 1099 and tell him/her that you should not have to pay tax on reimbursement money. If you do not like the answer you receive, you may want to file a complaint against the attorney with your State Bar Association.
I hope this helps
Richard Hixenbaugh
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | Richard Hixenbaugh's response to my question was timely and helped me a great deal when I had no where esle (that I knew of) to turn. It helped me communicate with my lawyer from a more knowledgeable stance...and helped the two of us get onto a path of better communication. | ||
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Answers by Expert:
Richard Hixenbaugh
Expertise
Auto insurance claims procedure, auto coverage, liability issues, auto damage questions, how to deal with the insurance company, loss of use and diminished value.
Experience
I have been involved in the insurance industry for over 25 years. I have experience in underwriting, sales, claims adjusting, auto damage estimating, auto value appraising and diminished value appraising. I have testified as an expert witness over 35 times.
Organizations
Society of Certified Auto Appraisers
Education/Credentials
Completed all required courses for the Florida Property-Casualty agents license and the Florida claims adjusters license. I have attended various courses on auto damage estmating, vehicle appraising and am ASE certified in collision damage analysis.
Past/Present Clients
My company has done work for consumers nationwide.
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