New Jersey Tax Division Issues Information on Disaster Relief Payments

The New Jersey Division of Taxation Dec. 4 announced that qualified disaster relief payments excluded from federal income tax under IRC section 139 are not taxable income for New Jersey individual income tax purposes. The announcement explains: 1) the exclusion includes amounts to cover necessary personal, family, living, or funeral expenses that were not covered by insurance; 2) the exclusion also includes expenses to repair or rehabilitate personal residences or repair or replace the contents to the extent that they were not covered by insurance; and 3) New Jersey residents should not include these amounts as income when filing tax ...