Hurricane Helene made landfall on September 26 and quickly became one of the deadliest hurricanes in U.S. history. The devastation and loss have been immeasurable. And many people are dealing with the impacts of Hurricane Milton, a Category 3 storm that made landfall last week near Siesta Key, Florida.
Unfortunately, as millions work to recover and deal with these disasters, dangerous misinformation is sweeping through social media and other outlets. This false information surrounds the availability of FEMA relief and other disaster assistance, including tax implications.
FEMA workers
For example, FEMA personnel in North Carolina recently faced alarming threats stemming from the spread of false information and baseless rumors. The threats reportedly came from what some called "armed militia" claiming to be "hunting FEMA." An individual in North Carolina has since been arrested for threatening to harm FEMA employees working on Helene relief in the area.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
However, the threats temporarily disrupted disaster relief efforts in some areas, forcing FEMA to modify its operations to ensure the safety of its workers.
“I take these threats seriously, and the safety of these responders is and will remain a priority for me and my team,” FEMA administrator Deanne Criswell told reporters.
The situation highlights the dangerous real-world consequences of misinformation and the challenges emergency responders face in carrying out their critical duties.
Let’s focus on the facts of some of the main myths and rumors surrounding hurricane relief. If you or someone you know has been impacted, relying on accurate information is crucial to getting much-needed funds and resources.
FEMA misinformation
One of the most common misconceptions involving Hurricane Helene involves FEMA (Federal Emergency Management Agency) assistance. Former President Trump has been part of the problem, spreading false information claiming FEMA assistance isn’t available.
For example, Trump, who is running for President of the United States, falsely stated at rallies and on social media that FEMA funds were diverted to support immigrants and that the federal agency is only offering small amounts of total aid.
MYTH: FEMA has run out of money for Helene disaster assistance, and those in need will only receive $750.
FACT: FEMA has confirmed that it has sufficient funds for immediate response and recovery needs. You should apply for FEMA assistance if you’re eligible and need it. (The agency has a portion of its site dedicated to debunking hurricane rumors.)
Also, while FEMA may provide an initial $750 payment for immediate news, that amount is NOT the limit for assistance.
A range of aid types are available based on need and eligibility including temporary housing assistance, home repair grants, and other assistance. This leads us to a related myth about whether accepting FEMA assistance impacts your tax liability.
MYTH: FEMA assistance is taxable income and will impact other government benefits like Social Security, Medicaid, or SNAP.
FACT: FEMA disaster grants are not considered taxable income. So, accepting FEMA aid won’t affect your federal tax liability and does not have to be reported on your federal tax return.
Also, benefits from other federal programs like Social Security, Medicare, Medicaid, or Supplemental Nutrition Assistance Program (SNAP) are separate and aren’t impacted by your FEMA aid.
Tax relief for hurricane victims
MYTH: All hurricane victims automatically receive a tax deadline extension.
FACT: While many hurricane victims in federally declared disaster areas receive automatic tax deadline relief from the IRS, that might not include ALL victims. Extended filing deadlines, penalty relief, or other modifications may be available based on where you live or where you have impacted records or businesses.
Always check the IRS disaster relief website or consult a tax professional for relief measures that apply to you. Kiplinger also keeps a running list of states with IRS tax deadline extensions.
Another related myth deals with claiming disaster losses on your tax return.
MYTH: Disaster losses can be claimed on any tax year’s return.
FACT: Due to the Tax Cuts and Jobs Act (TCJA), the casualty loss deduction is reserved for losses resulting from federally declared disasters. Generally, disaster losses are deductible on the tax return for the year the loss occurred or on the previous year’s return.
According to the Taxpayer Advocate Service, “Taxpayers may deduct personal property losses not covered by insurance or other reimbursements.”
Note: Your state may also offer casualty loss deductions. Be sure to check state-specific rules, as they may vary.
Hurricane donations
During times of crisis, it’s natural for people to want to help. However, scams and misinformation about charitable giving and tax deductions can create confusion.
MYTH: All donations to hurricane relief efforts are tax deductible.
FACT: While many charitable contributions are tax-deductible for those who itemize deductions, only donations to qualified organizations can be claimed for the deduction. So giving directly to individuals, for example, is not tax-deductible.
Always verify that an organization is a legitimate, qualified tax-exempt organization, before you give or claim a donation on your tax return.
Navigating hurricane relief: Facts vs. fiction
As communities unite to recover and rebuild following devastating Hurricanes and other disasters, having accurate information is crucial. Misinformation can rob people of valuable sources and stir unnecessary confusion about financial aid, other benefits, and, yes, even taxes.
Always verify any information you hear through official channels like FEMA (fema.gov) and the IRS (irs.gov) or seek guidance from a trusted and qualified tax professional or financial advisor.
How to Apply to FEMA? Apply online at DisasterAssistance.gov, use the FEMA mobile app, or call the FEMA Helpline at 800-621-3362.
More on Hurricane Relief
-
Last Call for Fortnite Refunds: Parents Can Still File a ClaimThe FTC is sending out $126 million in refunds to families whose kids were charged for unwanted items in Fortnite — and there’s still time to file a claim.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade TalksDespite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Technology Unleashes the Power of Year-Round Tax-Loss HarvestingTech advancements have made it possible to continuously monitor and rebalance portfolios, allowing for harvesting losses throughout the year rather than just once a year.
-
Summer Is Made for Sun, Fun … and Estate Planning ConversationsNow is the time to discuss estate planning with your loved ones to ensure the Great Wealth Transfer is efficient, tax-aware and in line with your legacy goals — not Uncle Sam's.
-
Don't Have an Estate Plan? Six Things That Could Go Very WrongBad things can happen when you're unprepared, such as big-time taxes and family turmoil. Generational planning can help protect the people you love. Here's some expert advice to help you out.
-
The $1 Million Retirement Question: Are You Being Tax-Smart About Your Pension?A financial planner raises some key considerations for navigating retirement with a pension and recommends four strategies.
-
Divorce and Your Home: An Expert's Guide to Avoiding a Tax BombYour home is probably your biggest asset, so if you're getting a divorce, the stakes are high. Keep it? Sell it? You need to have a good plan in place for how to handle it.
-
Fewer Agents, Fewer Audits: How IRS Staff Cuts Are Changing EnforcementSignificant reductions in the IRS workforce appear to be increasing the number of 'no change' audit closures. The shift could potentially increase the overall tax gap — the difference between taxes that should have been paid and those that were.
-
Trump Tariffs and Taxes: Waiting to See What Happens Is Not a StrategyLike presidents, tariffs come and go. Policy changes also shift about every two years with the election cycle. If you're paralyzed by uncertainty, you could be missing opportunities to benefit your financial future.
-
Timing Is Everything for Roth Conversions: An Expert's Guide to the Right StrategyUnderstanding the nuances of Roth conversions can help you avoid forking over more money in taxes than you need to.
