Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?
This is your opportunity to ask questions. No question too simple or too silly.
Culture war topics are accepted, and proposals for a better intro post are appreciated.
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Notes -
If the IRS is asking then I file it under “non-existent.” I’d probably categorize it as negative spending like you.
As everything with taxes, it's complicated (not a lawyer or CPA, just random guy on internet who files his own taxes). Generally, if it's a payout for a specific loss, it's not taxable. If it's something like disability insurance or more complex insurance not tied to a specific loss event - it may be taxable. Something like car insurance probably not taxable. I classify it as "other income" in my budgeting app but I do not report it to the IRS as income.
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