topic Is a FEMA Grant an "insurance or other reimbursement?" in Deductions & credits

Is a FEMA Grant an "insurance or other reimbursement?"

georgewmiller — Sun, 19 Jan 2025 20:20:58 GMT

Hurricane Ian caused about $50,000 damage to my daughter's home. She received a FEMA Grant to help cover what insurance would not. For the purpose of completing Form 4684 (Casualties, Disasters and Thefts), is the FEMA Grant considered an "insurance or other reimbursement", as noted in Publication 547?

Re: Is a FEMA Grant an "insurance or other reimbursement?"

KeshaH — Mon, 20 Jan 2025 19:49:48 GMT

Yes, a FEMA grant is considered a reimbursement for casualty loss. Losses that were covered by insurance or disaster relief grants such as FEMA grants aren't deductible for tax purposes.

For more information, please see Disaster Assistance and Publication 547.