I was in the flood in Louisiana in August of 2016. I was paid for loss and a housing allowance by FEMA, do I have to claim these payments as income?

[JohnR1 · Accepted solution]

You do not have to include the FEMA assistance which you received in your federal tax return - FEMA assistance is not taxable income, and does not affect benefits from any other federal program.

You would need to check your state's rules in respect of the taxability of FEMA assistance, but it would likely be not taxable for state tax purposes as well.

 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.

 For more information, please see the following IRS webpage with FAQs for Disaster Victims about FEMA mitigation payments:

https://www.irs.gov/businesses/small-businesses-self-employed/faqs-for-disaster-victims-mitigation-p....