My neighborhood was placed under mandatory evacuation for hurricane Harvey. We have been approved for Critical Needs Assistance from FEMA, a fixed amount stipend ($500) intended to cover expenses for food, gas, and other essentials while we are displaced.

So far, our home is undamaged (except for a minor fence repair), so we don't expect any insurance claims or other assistance in addition.

What are the tax implications of this payment? Should I expect to receive a 1099 or other form from FEMA? Will I need to report this when I file? And will I be liable for any tax on this amount?

  • When did you receive your payment?? – Kayyee Angton Sep 1 '17 at 3:56
  • I have not received it yet, just an approval letter at this point. – Wesley Marshall Sep 1 '17 at 4:23

According to TurboTax, it is not taxable income and you do not need to report it on your tax return.

FEMA assistance is not taxable income, does not need to be reported on your tax return, and does not affect benefits from any other federal program.

FEMA grants for rent, essential home repairs, personal property losses and other serious disaster-related needs not covered by insurance do not count as income.

FEMA.gov states the same thing.

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