Tax Law (Questions About Taxes)/insurance proceeds


I had some personal items stolen from my home(computer, laptops,stereo,tv, etc).  My insurance paid me for the value of the items, and sent me a 1099-misc and the value was on line 7, other income.  Do I need to file this on my taxes?


Thanks for your question.

They probably should not have sent the form and definitely not in box 7. Box 7 is compensation for services you rendered to them. I would contact them and inform them that it is improperly issued and please rescind it. That is unlikely to happen however, especially before April 15.  Keep a record of your request.

The proceeds are taxable only to the extent that the amount you received exceeds your cost on the items.  Since this is not likely the case, I would not include it on the return. If you get a letter from the IRS about it, respond to the letter, telling them it was a reimbursement for stolen personal items and was improperly issued by the insurance company.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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