Are insurance payments reportable?
January 30, 2019
We are an insurance company, so we report certain payments we make. If a claimant has a loss and we send payment to the bank, do we need to reflect that payment on a 1099?
Possibly. It depends on whether the payment constitutes taxable income to the recipient (insured). Payments for physical injury, medical expense reimbursement, return of capital or property damage payments are not reportable. Other types of payments are reportable (box 3), unless the insured is an exempt recipient,…
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