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?