Know the facts: Hurricane relief myths about FEMA, taxes and more

VaselineOctober 9, 2024

0 3 minutes read

Know the facts: Hurricane relief myths about FEMA, taxes and more

Hurricane Helene made landfall on September 26 and quickly became one of the deadliest hurricanes in US history. The devastation and loss was immeasurable. And many people are now bracing for the impact of Hurricane Milton, currently a Category 4 storm, approaching Florida’s west coast.

Unfortunately, as millions work to recover and cope with these disasters, dangerous misinformation is being spread through social media and other channels. This false information surrounds the availability FEMA relief and other disaster assistance, including tax implications.

Let’s focus on the facts of some of the main myths and rumors about hurricane relief. If you or someone you know has been affected, having the right information is crucial to getting much-needed funds and resources.

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Rumors of FEMA assistance

One of the most common misconceptions involving Hurricane Helene involves FEMA Assistance. Former President Trump was part of the problem of spreading false information claiming that FEMA assistance was not available.

For example, Trump, who is running for President of the United States, has falsely stated at rallies and on social media that FEMA funds have been diverted to support immigrants and that FEMA is only providing small amounts of aid.

MYTH: FEMA has run out of money for Helene disaster assistance, and those in need will only receive $750.

FACT: FEMA has confirmed that it has sufficient funds for immediate response and recovery needs. You should apply for FEMA assistance if you are eligible and need it. (The agency has a portion of its site dedicated to debunking hurricane rumors.)

Also, while FEMA may provide a down payment of $750 for breaking news, that amount is NOT the limit for assistance.

A wide range of types of help are available based on need and eligibility, including temporary housing assistance, home repair grants and other assistance. This leads us to a related myth about whether accepting FEMA assistance affects your tax liability.

MYTH: FEMA assistance is taxable income and will impact other government benefits such as Social Security, Medicaid, or SNAP.

FACT: FEMA disaster grants are not considered taxable income. So accepting FEMA aid will not affect your federal tax liability and does not need to be reported on your federal tax return.

Also, benefits from other federal programs, such as Social Security, Medicare, Medicaid, or the Supplemental Nutrition Assistance Program (SNAP) are separate and they are not affected by your FEMA aid.

Tax exemptions for hurricane victims

MYTH: All hurricane victims automatically receive an extension of the tax deadline.

FACT: While many hurricane victims in federally declared disaster areas receive automatic tax relief from the IRS, it may not include ALL victims. Extended filing deadlines, penalty waivers, or other changes may be available depending on where you live or where you have affected records or business.

Always check with the IRS disaster relief site or consult a tax professional for the relief measures that apply to you. Kiplinger also maintains a current list of states with IRS tax deadline extensions.

Another related myth concerns claiming disaster losses on your tax return.

MYTH: Disaster losses can be claimed on any tax year’s return.

FACT: Due to the Tax Cuts and Jobs Act (TCJA), the casualty loss deduction is reserved for losses resulting from federally declared disasters. In general, disaster losses are deductible on the tax return for the year the loss occurred or on the previous year’s return.

right Taxpayer Advocate Service“Taxpayers may deduct personal property losses not covered by insurance or other reimbursements.”

Note: Your state may also offer casualty loss deductions. Be sure to check your state-specific rules, as they may vary.

Hurricane Donations

In times of crisis, it’s natural for people to want to help. However, scams and misinformation about charitable giving and tax deductions can be confusing.

MYTH: All donations to hurricane relief efforts are tax deductible.

FACT: While many charitable contributions are tax deductible for itemizers, only donations to qualified organizations can be claimed for the deduction. So giving directly to individuals, for example, is not tax deductible.

Always verify that an organization is a legitimate, qualified tax-exempt organization before giving or claiming a donation on your tax return.

Sailing for Hurricane Relief: Focus on the Facts

As communities come together to recover and rebuild after devastating hurricanes and other disasters, having accurate information is critical. Misinformation can deprive people of valuable resources and cause unnecessary confusion about financial aid, other benefits, and even taxes.

Always verify any information you hear through official channels such as FEMA (fema.gov) and IRS (irs.gov) or seek guidance from a trusted and qualified tax professional or financial advisor.

How to apply to FEMA? Apply online at DisasterAssistance.govuse The FEMA mobile appor call the FEMA hotline at 800-621-3362.

More about hurricane relief

VaselineOctober 9, 2024

0 3 minutes read

Vaseline

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