Are Insurance Settlements Taxable In Canada. Car accident insurance settlements are generally not taxable, although there are certain exceptions, according to the (irs). The canadian revenue agency(cra) does not consider awards for pain and suffering taxable income.
Jan 5, 2017 this page lists the types of income that are not taxable and you do have to most amounts received from a life insurance policy following in recent technical interpretation, canada revenue agency (cra) addressed whether amount an out court settlement agreement would be or non. Fortunately, for alberta car accident settlements, there is a straightforward answer to this commonly asked question. Just like with a normal insurance settlement, compensation for medical bills and repair of property are not taxed in a lawsuit.