Is an insurance settlement considered taxable income?

Is an insurance settlement considered taxable income? Wife was in an auto accident. Our attorney negotiated a small settlement with the insurance company. IRS claims we owe tax on the settlement because our attorney reported the settlement amount as nonemplyoyee compensation paid to us. I thought insurance settlements were nontaxabel income. Need help or the proper publication in the tax code to cite when I respond to the IRS. Thanks BEST ANSWER: Try this site where you can compare quotes from the best companies : Compare free insurance quotes RELATED: Can I get free health insurance? I just paroled out of prison. I don’t have a job yet. Is there… Read More

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