Will insurance Paypal payment be taxed?
I was involved in a car accident in 2023, and the insurance payout for my car was sent to me through Paypal. I understand any payments higher than $600 will be reported to the IRS, but have also read insurance payouts aren't taxed. I withdrew the money to get my replacement car and the parts needed to repair it, but now I'm unsure how it will affect my taxes next year. I do not run a business through Paypal, it is only for personal purchases.
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