Katrina Aid Does not Affect the Benefits or Taxes of Seniors
Release Date: November 15, 2005
Release Number: 1605-104
» More Information on Alabama Hurricane Katrina
MONTGOMERY, AL -- Seniors who suffered losses after Katrina pummeled the Gulf Coast don’t have to worry about being hit a second time because they receive disaster funds. This advice from the Alabama Emergency Management Agency and the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) is good news for the elderly. As a rule, Social Security benefits are taxed if the amount is above the figure set by the Internal Revenue Service (IRS). Anyone on food stamps or Medicaid could lose these benefits if their income for the year is too high.
Not to worry. Senior Deputy Federal Coordinating Officer, Michael Bolch said, “When elderly Alabamians get a FEMA check, the government understands that it is to help them get back to where they were before the hurricane. It is not counted as income. The elderly won’t have a penny of this assistance taxed and it won’t affect their eligibility to continue receiving any other benefits.”
Disaster assistance is never considered as income by the IRS, regardless of a person’s age.
may be reluctant to call FEMA’s toll-free number to register for many reasons. They may think they won’t be able to answer the questions or fill out forms, or that they won’t understand the process. When they do register, they sometimes ignore the U.S. Small Business Administration (SBA) application sent to them by mail. They won’t consider applying for a loan because they feel they can’t pay the money back. Filling out the SBA form is very important because it helps to determine eligibility for a wide range of disaster relief programs. It is not just for a loan.
As part of FEMA’s Hazard Mitigation Program, a homeowner could receive a grant from the state to protect their home against a disaster in the future by making it stronger and safer. These funds are also not taxable.
No risk is ever involved in applying for disaster aid. Seniors shouldn’t be afraid to call and register. A FEMA specialist will explain the types of help available and walk callers through the registration process. Translators can also speak to callers in a language they feel comfortable with.
The FEMA toll-free registration number is 800-621-FEMA (3362), or for the speech- or hearing-impaired, (TTY) 800-462-7585. Seniors can also register online at www.fema.gov. The deadline to register is January 11, 2006.
Last Modified: Tuesday, 15-Nov-2005 14:00:15