NEW YORK – Hurricane Sandy survivors in New York who receive FEMA assistance will not pay additional federal taxes or lose Social Security or other government benefits.
If a survivor receives disaster relief assistance that is excluded from federal taxable income, then the payment also is excluded from New York State taxable income.
FEMA assistance is not taxable income 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. Donations from charitable organizations also will not affect Social Security payments or Medicare benefits.
Survivors can visit the IRS’s Tax Relief in Disaster Situations pages at www.irs.gov/uac/Tax-Relief-in-Disaster-Situations and www.irs.gov/uac/Newsroom/IRS-Extends-Tax-Relief-to-Some-New-Jersey-and-New-York-Victims-of-Hurricane-Sandy.
For more information on New York State income tax and disaster aid, survivors can visit the state’s website at www.tax.ny.gov/bus/multi/additional_sandy_information.htm#treatment.
Hurricane Sandy survivors in New York have until Feb. 27, 2013 to register for federal disaster assistance.