Are the East Palestine train derailment payments taxable?

In some cases, payments made related to the train derailment in East Palestine, Ohio, on February 3, 2023, are not taxable. The payment can be excluded from income if it was provided by a government agency or Norfolk Southern Railway (including any subsidiary, insurer, agent, or related person) and received on or after February 3, 2023. Further, the amount must have been paid to you to compensate for the following:

• Loss, damages, or expenses
• Loss in real property value
• Closing costs with respect to real property (including realtor commissions)
• Inconvenience (including access to real property).

Qualified disaster relief payments don't include:

• Payments for expenses otherwise paid for by insurance or other reimbursements; or
• Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation.

See IRS.gov  for more information. If you have non-taxable payments, you can mail your return with the attached statement the IRS requests.