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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
Think Twice Before Getting a Credit Card Cash AdvanceA credit card cash advance can be a quick solution when you need emergency help with money. But you'll pay for the convenience with high interest and fees.
-
What is AI Worth to the Economy?The Letter Spending on AI is already boosting GDP, but will the massive outlays being poured into the technology deliver faster economic growth in the long run?
-
I'm a Financial Adviser: Three Things You Will Wish You Did Before the Fed Cuts Interest RatesWith potential interest rate cuts on the horizon, you might want to lock in today's higher yields and consider adjusting your asset allocation.
-
How Will the One Big Beautiful Bill Shape Your Legacy?The One Big Beautiful Bill Act removes uncertainty over tax brackets and estate tax. Families should take time to review estate plans to take full advantage.
-
When You Need Capital Quickly, Think 'Ready, Set, Fund': A Financial Adviser's StrategyInvestors must be able to free up cash to meet short-term needs from time to time. This strategy will help you access capital without derailing your long-term goals.
-
I'm an Estate Planner: Moving Family Assets to a Safe Haven Abroad Could Be a Huge Headache for Your HeirsIn troubled times like these, wealthy clients may seek financial refuge outside of the U.S. But that could cause more tax and estate problems than it solves.
-
Fall Is Tax Time? Yes! Act Now to Make Needed AdjustmentsReview your withholdings, contribute to tax-saving HSA and FSA accounts, manage a bonus' impact and adjust for major life events such as weddings and job changes.
-
1031 Exchanges Aren't Just for Big Real Estate Deals: An Expert's Playbook for Regular Property OwnersOne of the biggest mistakes property owners make is not realizing they're eligible for tax deferral through a Section 1031 like-kind exchange.
-
Timing Your Retirement: A Financial Professional's Guide on When to Say WhenFirst, ask yourself what kind of retirement you want: big and splashy or simple and sweet. Then you can run the numbers to help choose just the right moment.
-
Three Common Social Security Myths in 2025: A Retirement Strategist Explains What You Need to KnowTaxes on benefits haven't been eliminated, and based on current projections, the program isn't going bankrupt. Understanding the truth about Social Security and knowing what you can control can help you better prepare for retirement.
