Some East Palestine Derailment Payments are Non-Taxable

The IRS indicated that some of the payments received due to the East Palestine railroad derailment are non-taxable.

Photo by Ben on Unsplash

The IRS issued notice 2024-46 indicating that many of the payments received due to the East Palestine train derailment in 2023 are non-taxable qualified disaster payments.

The IRS determined that the February 3, 2023, derailment qualifies as “an event of a catastrophic nature”. As a result, various payments are considered to be non-taxable.