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What is your question? I don't understand what you wrote.
Are you asking about a tax credit of $3481 for this?
IRS announces tax relief for California wildfire victims | Internal Revenue Service
$3481 is what I paid in Federal taxes and it was paid on the campfire lawsue money that I got. In January I heard on the local news that we did not have to pay taxes on that lawsue. Thanks
Howard Brown
There was bill introduced in the California assembly last January to make these payments free from state taxes, but I don't know if it was ever passed.
But you asked about Federal. See Casualty Losses, here:
IRS announces tax relief for victims of wildfires in California | Internal Revenue Service
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