Victims of disasters may receive goods and financial help from organizations, such as the Red Cross. IRS Commissioner Rettig confirmed that such payments are not taxable to recipients. Gifts from organizations are specifically excludable from gross income (Code Sec. 102). The same tax-free treatment applies to gifts received from individuals; they are not included in gross income. Thus, for example, goods and other payments received by victims of the Surfside Condominium collapse are not taxable.
Payments within one tax year of the entire amount due to a participant in a qualified retirement plan. Qualifying lump sums may be directly rolled over tax free, or, in some cases, are eligible for current tax under a favorable averaging method.