<prompt> Human: Hello!So a few months ago my sibling was involved in a pretty bad car wreck. As the EMTs appeared, my sibling mentioned neck pain, which prompted an emergency helicopter ride to the nearest trauma center. The wreck seemed pretty bad; there was blood everywhere and the SUV looked like a station wagon. After waiting for hours in the emergency room, the doctors come out to tell us that my sibling only suffered a laceration to the head. 10 stitches and a prescription later, we were out the door. Of course, being an avid PF reader, the insurance repercussions worried me. My sibling was on a state-sponsored childrens plan that was due to run out that exact month as they had become an adult in our state. Even though they were at the tail-end of the policy, the insurance company paid out. The company negotiated the bills with the hospital, and then they nickel-and-dimed us for the rest of the payments, which was fine by us my sibling was alive and well, what more could I ask for?. But then the big bill came in: 50000 helicopter charge. My siblings policy had a 100 deductible for all emergency vehicle services, no other language. We thought they would renege or at least negotiate the bill. Nope. We received a check for the exact amount in the mail. No fuss, no negotiation. Only issue is the check is written in my siblings name, not the helicopter company. They would have to deposit the check in their account and pay the company. Questions: Are there any tax implications for depositing this kind of check into a kids bank account? Would the IRS not question that? If so, could my sibling take the money, hire a negotiator to reduce the bill, and pocket the rest for personal and financial reasons tax?. I know that sounds unscrupulous, but if there are tax implications, what choice does my sibling have?Any advice would be awesome. If all else fails, well attempt to get the insurance company to rewrite the check in the helicopter companys name, but that seems like it will be an uphill battle. We only have a few more weeks before the check expires. TL;DR: 50k Helicopter bill, insurance paid. Check in insureds name, not companys. Wat do?Question answered! Thank you for the advice!Assistant: Are there any tax implications for depositing this kind of check into a kids bank account? Would the IRS not question that?If they do, you show them the check from the insurance company the invoice paying the helicopter ambulance. There should be no tax liability on insurance payouts. Just cash the check, and pay the helicopter company.Human: Awesome! Thank you so much. I did not know that whatsoever.  <response>: The IRS only taxes damages that are not related to an injury or illness or punitive damages. This was a transfer payment, strange that the insurer would do it bc the insured could just pocket the check, but even then it wouldnt be taxable bc it is related to an actual injury and not from punitive damages. I can send you a specific link if you like, but am on mobile right now. 