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Is the Thomas Fire Relief Fund taxable?

david-chau
Level 1

A taxpayer I work with was a victim of the California Wildfire, and he received a check from the Thomas Fire Relief Fund in 2018. 

Is this relief money taxable?

If it is, how do I enter it into Lacerte?

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itonewbie
Level 14

Based on the information available on the following website, this was organized by United Way, a §503(c)(3) charity, and the disbursements are need-based disaster relief grants to individuals of a charitable class.  If that is the case, the amount received by your client would generally constitute a gift (provided no service was rendered in exchange) and not taxable as income to your client.

https://thomasfire.venturacountyrecovers.org/united-way-ventura-countys-thomas-fire-relief-fund-acce...

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Farewell AllStars, Hello Level 14! After all, what is life without numbers for a tax pro?

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itonewbie
Level 14

Based on the information available on the following website, this was organized by United Way, a §503(c)(3) charity, and the disbursements are need-based disaster relief grants to individuals of a charitable class.  If that is the case, the amount received by your client would generally constitute a gift (provided no service was rendered in exchange) and not taxable as income to your client.

https://thomasfire.venturacountyrecovers.org/united-way-ventura-countys-thomas-fire-relief-fund-acce...

---------------------------------------------------------------------------------
Farewell AllStars, Hello Level 14! After all, what is life without numbers for a tax pro?

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