Disaster Aid Recipients Do Not Pay Additional Taxes
Jan. 4, 2012 - This tax season, there is some good news for those impacted by disaster in 2011: recipients of Federal Emergency Management Agency (FEMA) disaster assistance grants do not pay additional taxes, lose their Social Security or disability benefits, or face a reduction in benefits from any other income-based program.
FEMA grants do not add to taxable income, as long as a grant is given as assistance to recover from a disaster. (FEMA disaster aid is not considered additional income by the Internal Revenue Service.)
Receiving a FEMA grant will not affect Social Security or disability benefits. In addition, disaster grants will not cause a recipient to become ineligible for Medicaid, welfare assistance, food stamps, or Aid to Families with Dependent Children.
Page last updated: Jan. 31, 2012
