Spend Disaster Recovery Checks Wisely
Release Date: September 17, 2008
Release Number: 1785-042
» More Information on Florida Tropical Storm Fay
ORLANDO, Fla. -- With thousands of sizeable disaster assistance payments being distributed to people affected by Tropical Storm Fay in Florida, state and federal emergency officials are urging recipients to take care with the way they handle the money and use it only for disaster-related losses.
Experience tells disaster managers that this is a time when people are particularly vulnerable, and predators are quick to take advantage of them. When dealing with thousands of dollars, caution is required.
Direct deposit to an applicant's bank account is the best way to handle such large sums of money. But if that is not possible, checks received from the Federal Emergency Management Agency (FEMA) should be deposited as soon as they arrive in the mail. Such checks should not be carried on one's person, and recipients should never deal with strangers offering check-cashing or deposit services.
This financial assistance is intended to help survivors recover from disaster losses, and the money should not be used for any other purpose. Applicants should avoid the temptation to pay household bills with the money or make purchases unrelated to needs created by the disaster.
Any money received from federal or state disaster programs for Tropical Storm Fay which is used to recover from the disaster is tax-free, unless that money is reimbursed through insurance. An exception is Disaster Unemployment Insurance, which will be taxed. Special tax law provisions may help victims recover financially from the impact of disasters. Visit www.irs.gov for additional information, or call IRS toll-free at 800-829-1040 for general tax assistance.
Grant recipients are urged to keep receipts of their disaster spending and stay in touch with FEMA either by visiting the closest Disaster Recovery Center or through the FEMA helpline if their situations change. The number is 800-621-FEMA (3362), from 7 a.m. to midnight seven days a week until further notice. The TTY number for those hard of hearing, deaf or having speech impairment is 800-462-7585.
FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.
Last Modified: Wednesday, 17-Sep-2008 15:51:31