Income Taxes?
My husband was hurt a work and lost his right forearm. We have a private accidental Insurance policy. We are wondering if within the state of Ky do you have to report this on your taxes. We have hear tht you don't then we enjoy heard that we do. We haven't file our taxes yet.
Answers: It appears to me the answer is no. Internal Rev Code Sec 104(a)(3) provides an exclusion from gross income amounts received through happenstance or health insurance for personal injuries. This wedge specifically applies to individuals who purchase the insurance policies out of their own funds...i.e., private policies.
I've read through the KY income tax instructions for 2007, pg 4 have a good summary of the differences between federal and state rules, and I see nought that would change the result (this reward is excluded from income) in your state.
Good luck!
Schedule C?
I file my taxes a few weeks support. My status say theyve be agreed but why hold I nonetheless to recieve them?
Tax reimbursement & child support?
Last year I one and only get Public Assistance and SSI for my son. Do I own to database taxes this year?
Independent contractor taxes?
Answers: It appears to me the answer is no. Internal Rev Code Sec 104(a)(3) provides an exclusion from gross income amounts received through happenstance or health insurance for personal injuries. This wedge specifically applies to individuals who purchase the insurance policies out of their own funds...i.e., private policies.
I've read through the KY income tax instructions for 2007, pg 4 have a good summary of the differences between federal and state rules, and I see nought that would change the result (this reward is excluded from income) in your state.
Good luck!