Disaster Relief FAQ # C-3 |
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If an employer provides assistance directly to employees who are in need because of a qualified disaster without going through a charitable organization, is such assistance taxable income to employees?
Amounts paid to reimburse or pay reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a qualified disaster, or to repair or rehabilitate a personal residence, are not subject to federal income taxation to the extent any such expense is not otherwise reimbursed, such as by insurance. See Revenue Ruling 2003-12, 2003-1 C.B. 283.
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Page Last Reviewed or Updated: January 16, 2009