Find your diamond
Find your jewelry
shape
carat
color
clarity
  • Pricescope Upgrade/Maintenance Is Complete.

    We still have a few things to iron out. If you see any bugs, issues or have any concerns, let us know here in this discussion.

insurance claim/income tax question?

Status
Not open for further replies. Please create a new topic or request for this thread to be opened.

mrs jam

Brilliant_Rock
Joined
Jun 24, 2004
Messages
686
I have a question about how my Chubb insurance claim money will affect my income taxes. I lost my engagement ring while traveling earlier this year, filed a claim with Chubb and recieved a check for the replacement value. I banked the money and since my husband and I have separated and appear to be headed toward a divorce unless a miracle occurs, I don''t intend on using the money to purchase a new stone. I''ve never filed taxes on my own before and was planning on using the turbotax website when the time comes. Can anyone tell me if they know if/how you have to pay taxes on insurance payouts?

Thank you.
 

stretch4

Ideal_Rock
Joined
Jul 25, 2004
Messages
4,360
Mrs Jam, I can''t be of much help about the insurance/tax question, but I just wanted to tell you how sorry I am about both your lost e-ring and your separation. I wish you the best, and I''m sure someone here is bound to be able to answer your question!
 

mrssalvo

Super_Ideal_Rock
Joined
Jan 3, 2005
Messages
19,132
mrs Jam, I can''t answer your tax question either, I''m sure Rock Doc would know if he see''s this or any PS accountants but I did want to wish you well and I''m very sorry...
 

Dee*Jay

Super_Ideal_Rock
Premium
Joined
Mar 26, 2006
Messages
12,928
Mrs. Jam - I''m very sorry to hear of your current situation.

To answer your question; if I recall correctly insurance payouts based on loss and/or damage claims are not taxable. The insurance company is simply giving you $ back for something that you''ve spent $ on in the first place, you have not earned or made any $.

I can''t find the reference that I''m looking for at the moment (AND PLEASE DO NOT RELY ON MY POSSIBLY FAULTY RECOLLECTION AS ANY SORT OF TAX ADVICE), but as Mrs. S. said Roc Doc should be able to help you. Hopefully he will check this thread.
 

mrs jam

Brilliant_Rock
Joined
Jun 24, 2004
Messages
686
Thank you all for your replies and well wishes. That makes sense that I would not have to pay taxes on the payout, but I''m sure I will on the interest that the money has earned while sitting in my savings account (which is extremely minute, thank goodness!) Thanks so much!
 

Skippy123

Super_Ideal_Rock
Joined
Nov 24, 2006
Messages
24,299
It is income but you are right about the interest.

If you go to the IRS site http://www.irs.gov/pub/irs-pdf/p17.pdf
look at filing, and income sections of the publication 17; that should point you in the right direction.
I am an accountant, but I don't do taxes for a living; I actually audit. I hope that helps you.

I am so sorry about your seperation; Happy New year and hopefully it will be filled with positives in 2007.
 

Dee*Jay

Super_Ideal_Rock
Premium
Joined
Mar 26, 2006
Messages
12,928
Skippy - do you mean the *insurance payout* is income or the *interest* that has been earned on the payout is income (or both)?
 

Mara

Super_Ideal_Rock
Joined
Oct 30, 2002
Messages
31,003
mrs jam, have no advice to give on the income tax but i am sorry to hear about your e-ring (the beautiful K??) and also the separation from your husband, i hope that you two can work things out...miracles ARE out there!! take care and happy new year.
 

Skippy123

Super_Ideal_Rock
Joined
Nov 24, 2006
Messages
24,299
I guess what I am saying is that I would not worry about it unless you used it toward investments where you are making money. Sorry, and I hope that helps.
 
Status
Not open for further replies. Please create a new topic or request for this thread to be opened.
Be a part of the community It's free, join today!

Need Something Special?

Get a quote from multiple trusted and vetted jewelers.

Holloway Cut Advisor



Diamond Eye Candy

Click to view full-size image.
Top