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If you were in a car accident last year, you might have some income tax questions you should be asking. According to the IRS there are a few instances where having a car accident can impact your income tax return.
Deductible losses - Losses from a car accident are casualty losses and are either “deductible” or “nondeductible” casualty losses. Nondeductible loss cannot be claimed if the accident occurred because of your own willful or negligent action, or if someone else’s negligence or willful action caused the accident when they were acting on your behalf. |