Will I have to pay Canadian tax on a US insurance settlement?

[AllisonVSC]

Back in June I was a passenger in a motor vehicle accident in the United States. I will be receiving an insurance settlement to cover my medical expenses plus "pain and suffering." In the US this settlement payment is not taxable, but I'm not sure what my obligation is under Canadian tax law. Any thoughts? Thanks.

 

[toby]

Insurance settlements are not taxable in Canada either.

 

[Jonboy]

Just to add that if you have claimed a tax credit for medical costs that have now been reimbursed you should file a T1 adjustment for those years. If you remmeber of course.

 

[AllisonVSC]

Just to add that if you have claimed a tax credit for medical costs that have now been reimbursed you should file a T1 adjustment for those years. If you remmeber of course.

It just happened in June 2011 and I had no medical expenses in Canada, so I guess I don't have to worry about that. Thanks guys.