Such qualified payments include those made to cover personal, family, living or funeral expenses not covered by insurance, along with expenses not covered by insurance for repairing or rehabilitating personal residences or repairing or replacing the contents.
IRS Issues Guidance on Chilean Earthquake
WASHINGTON, D.C. The Internal Revenue Service has designated the earthquake that occurred in Chile last month as a qualified disaster for federal tax purposes. The guidance enables those dividuals who receive qualified disaster relief payments from any person to exclude those payments from income on their tax returns. It also permits employer-sponsored private foundations to assist employee-victims in affected areas without altering their tax-exempt status.
