Carer's Allowance is taxable, according to Carers UK. Based on information provided by the organization, carers will only be obligated to pay tax on the sum if they have additional sources of income that are taxable, such as an occupational pension or earnings.
On its own, the Carer's Allowance falls below the ceiling for having to pay tax. In addition, this allowance is not determined by the income or savings of the carer, according to Carers UK, although earnings may influence the carer's entitlement. Carer's UK also reports that the carer's national insurance record does not affect payment of a Carer's Allowance.Learn More
According to Forbes, severance pay is taxable in the year in which the employee receives it. Prior to an employee receiving a severance check, the employer should take out appropriate state and federal taxes. Severance pay is reported on the employee's W-2 form, according to Turbo Tax.Full Answer >
Qualifying payments for foster care are generally not taxable, according to IRS Publication 525. To be excluded from income, foster care payments have to have been received from a state or local government or a qualified placement organization for care provided in the taxpayer's home.Full Answer >
Pain and suffering settlements aren't taxable under federal or state law, states Nolo. Damages for pain and suffering are considered compensatory damages, which the IRS deems non-taxable. Compensatory damages are meant to compensate the victim for direct losses, such as lost wages, medical bills, loss of consortium and attorney's fees.Full Answer >
Life insurance that pays out on the death of an insured person is not taxable unless the policy was turned over to the recipient for a price, according IRS Publication 525. Any amount received in excess of the value of the insurance is interest and is taxable.Full Answer >