Page 54 - Virtual Currencies

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For amounts paid under item 4, a disaster is form Relocation Assistance and Real Property Social security benefits (including
qualified if it's determined by an applicable fed- Acquisition Policies Act for Federal and Feder- lump-sum payments attributable to prior
eral, state, or local authority to warrant assis- ally Assisted Programs aren't includible in gross years), Supplemental Security Income (SSI)
tance from the federal, state, or local govern- income, but are includible in the basis of the benefits, and lump-sum death benefits.
ment, agency, or instrumentality. newly acquired property. The Social Security Administration (SSA) pro-
vides benefits such as old-age benefits, bene-
Disaster mitigation payments. You can Relocation payments and home rehabilita- fits to disabled workers, and benefits to spou-
also exclude from income any amount you re- tion grants. A relocation payment under sec- ses and dependents. These benefits may be
ceive that is a qualified disaster mitigation pay- tion 105(a)(11) of the Housing and Community subject to federal income tax depending on
ment. Qualified disaster mitigation payments Development Act made by a local jurisdiction to your filing status and other income. See Pub.
are commonly paid to you in the period immedi- a displaced individual moving from a flood-dam- 915 for more information. An individual origi-
ately following damage to property as a result of aged residence to another residence isn't in- nally denied benefits, but later approved, may
a natural disaster. However, disaster mitigation cludible in gross income. Home rehabilitation receive a lump-sum payment for the period
payments are used to mitigate (reduce the se- grants received by low-income homeowners in when benefits were denied (which may be prior
verity of) potential damage from future natural a defined area under the same Act are also not years). See Pub. 915 for information on how to
disasters. They're paid to you through state and includible in gross income. make a lump-sum election, which may reduce
local governments based on the provisions of your tax liability. There are also other types of
the Robert T. Stafford Disaster Relief and Indian financing grants. Nonreimbursable benefits paid by the SSA. However, SSI bene-
Emergency Assistance Act or the National grants under title IV of the Indian Financing Act fits and lump-sum death benefits (one-time pay-
Flood Insurance Act. of 1974 to Indians to expand profit-making In- ment to spouse and children of deceased)
You can't increase the basis or adjusted ba- dian-owned economic enterprises on or near aren't subject to federal income tax. For more
sis of your property for improvements made reservations aren't includible in gross income. information on these benefits, go to SSA.gov.
with nontaxable disaster mitigation payments.
Indian general welfare benefit. Gross in- Form SSA-1099. If you received social se-
Home Affordable Modification Program come doesn't include the value of any Indian curity benefits during the year, you'll receive
(HAMP). If you benefit from Pay-for-Perform- general welfare benefit. “Indian general welfare Form SSA-1099, Social Security Benefit State-
ance Success Payments under HAMP, the pay- benefit” includes any payment made or services ment. An IRS Notice 703 will be enclosed with
ments aren't taxable. provided to or on behalf of a member (or any your Form SSA-1099. This notice includes a
spouse or dependent of that member) of an In- worksheet you can use to figure whether any of
Hardest Hit Fund and Emergency Home- dian tribe or Alaska Native Corporation under your benefits are taxable.
owners' Loan Program. If you receive or ben- an Indian tribal government program, but only if: For an explanation of the information found
efit from payments made under: on your Form SSA-1099, see Pub. 915.
• A State Housing Finance agency (State 1. The program is administered under speci-
HFA) Hardest Hit Fund program in which fied guidelines and doesn't discriminate in Form RRB-1099. If you received equiva-
program payments can be used to pay favor of members of the governing body of lent railroad retirement or special guaranty ben-
mortgage interest, or the Indian tribe or Alaska Native Corpora- efits during the year, you'll receive Form
• An Emergency Homeowners' Loan Pro- tion; and RRB-1099, Payments by the Railroad Retire-
gram (EHLP) administered by the Depart- 2. The benefits provided under the program ment Board.
ment of Housing and Urban Development (a) are available to any tribal member who For an explanation of the information found
(HUD) or a state, meets guidelines, (b) are for the promotion on your Form RRB-1099, see Pub. 915.
• The Homeowner Assistance Fund (HAF) of general welfare, (c) aren't lavish or ex- Joint return. If you're married and file a
program in which program payments are travagant, and (d) aren't compensation for joint return, you and your spouse must combine
used to provide financial assistance to eli- services. your incomes and your social security and
gible homeowners for purposes of paying equivalent railroad retirement benefits when fig-
certain expenses related to their principal Generally, any items of cultural significance, uring whether any of your combined benefits
residence to prevent mortgage delinquen- reimbursement of costs, or cash honorarium for are taxable. Even if your spouse didn't receive
cies, defaults, foreclosures, loss of utilities participation in cultural or ceremonial activities any benefits, you must add your spouse's in-
or home energy services, and also dis- for the transmission of tribal culture aren't trea- come to yours when figuring if any of your bene-
placements of homeowners experiencing ted as compensation for services. fits are taxable.
financial hardship after January 21, 2020,
the payments aren't included in gross income Note. The above exclusion was enacted by Taxable amount. Use the worksheet in
the Tribal General Welfare Exclusion Act of
and aren't taxable. 2014, September 26, 2014. The exclusion ap- the Forms 1040 and 1040-SR instruction pack-
age to determine the amount of your benefits to
For more details about the HAF program, go plies to tax years for which the period of limita-
to Home.Treasury.gov/Policy-Issues/ tion on refund or credit under section 6511 has include in your income. Pub. 915 also has work-
sheets you can use. However, you must use the
Coronavirus/Assistance-for-State-Local-and- not expired (generally, within 3 years from the worksheets in Pub. 915 if any of the following
Tribal-Governments/Homeowner-Assistance- time the return was filed or 2 years from the situations apply.
Fund. time the tax was paid, whichever expires later). • You received a lump-sum benefit payment
If you are a tribal member and wish more Additionally, a claim for the above exclusion will during the year that is for one or more ear-
details about the HAF program, go to IRS.gov/ be allowed if made within 1 year of the enact- lier years.
Newsroom/FAQs-for-Payments-by-Indian- ment of the exclusion. • You exclude employer-provided adoption
Tribal-Governments-and-Alaska-Native- benefits or interest from qualified U.S. sav-
Corporations-to-Individuals-Under-Covid- Note. The enactment of the above exclusion ings bonds.
Relief-Legislation. generally codifies the exclusion afforded under • You take the foreign earned income exclu-
Revenue Procedure 2014-35, June 4, 2014. sion, the foreign housing exclusion or de-
Mortgage assistance payments under sec- See Revenue Procedure 2014-35 for more de- duction, the exclusion of income from
tion 235 of the National Housing Act. Pay- tails. American Samoa, or the exclusion of in-
ments made under section 235 of the National come from Puerto Rico by bona fide resi-
Housing Act for mortgage assistance aren't in- Medicare. Medicare benefits received under ti- dents of Puerto Rico.
cluded in the homeowner's income. Interest tle XVIII of the Social Security Act aren't includi-
paid for the homeowner under the mortgage as- ble in the gross income of the individuals for
sistance program can't be deducted. whom they're paid. This includes basic (Part A
(Hospital Insurance Benefits for the Aged)) and
Replacement housing payments. Replace- supplementary (Part B (Supplementary Medical
ment housing payments made under the Uni- Insurance Benefits for the Aged)).

Publication 525 (2022) Page 31