Question

Is an insurance payout from military considered taxable income?

Forum|Forum|6 years ago
June 4, 2019
2 replies
0 views

son is in national guard, involved in off duty MVA, received trauma insurance payout from military in 2016 to help with incurred expenses. Is this considered taxable income and required to be reported on tax return?

TurboTax Deluxe Online

P

Patrice11

Was this reported on a 1099-MISC or a W2?

M

maglib

First thank you to your son for serving. Did you know that TT give service members use of software free or at a reduced rate? https://turbotax.intuit.com/personal-taxes/online/military-edition.jsp

Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI) provides automatic traumatic injury coverage to all Servicemembers covered under the SGLI program. It provides short-term financial assistance to severely injured Servicemembers and Veterans to assist them in their recovery from traumatic injuries. TSGLI is not only for combat injuries, but provides insurance coverage for injuries incurred on or off duty.

It is a form of Life Insurance. The IRS has deemed this money is NON-taxable....

God Bless your family.

**I don't work for TT. Just trying to help. All the best. ***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.