$21M Aid Exempted from Taxes by IRS for Ohio Train Derailment Victims; Norfolk Southern’s $107M Relief Detailed!

Norfolk Southern’s $107M Ohio Train Derailment Assistance Package Detailed

$21M in Aid Tax-Free for East Palestine Residents After Ohio Train Derailment

According to AP News, recently the IRS decided that most Americans who got money from Norfolk Southern after the Ohio train derailment incident in East Palestine, Ohio won’t have to pay taxes on it. This decision follows a big train crash on February 3, 2023 where lots of Americans had to leave and lots of stuff got wrecked. The IRS said the cash Americans got for finding a place to stay or replacing their stuff won’t count as taxable income because the Ohio train derailment was a major disaster. This news is a relief for many who were worried about paying taxes on the help they got. Norfolk Southern the train company that caused the crash says it’s handed out more than $21 million to Americans affected by the crash. This is part of a bigger $107 million aid package. Residents are happy about the IRS decision because they’re still trying to get back on their feet after the crash. Some are thinking about whether to take part in a $600 million settlement or sue the company on their own. The National Transportation Safety Board is still looking into what caused the crash and will have a hearing soon.

The news of possible taxation on these payments had been a major concern for the residents who are still grappling with the aftermath of the disaster. Misti Allison a resident of East Palestine expressed frustration that the IRS did not make this decision sooner. “The IRS ruling is a positive step but it’s minor in the big picture” she said. Allison hopes that President Biden will follow through on his promise that the government will cover what Norfolk Southern cannot. U.S. Senator Sherrod Brown from Ohio also criticized the delay stating “The Americans of East Palestine should never have had to pay taxes on assistance they needed after the Ohio train derailment.” Norfolk Southern praised the IRS decision emphasizing their commitment to helping East Palestine recover. “We’re proud of the investments we’ve made and commend the IRS for relieving residents of an additional tax burden” the railroad stated. However, not all payments are exempt from taxes. The IRS clarified that payments for lost income, business compensation, or land access during the cleanup will still be taxable. Residents who already filed their taxes before the April 15 deadline will need to amend their returns and request refunds for any taxes paid on the non-taxable payments.

READ ALSO: Up To $50,000 In Financial Aid Available To Native Americans: Plus, $600M Settlement For Ohio Train Derailment Victims And $125M Unclaimed Tax Refunds In California!

$21M Aid Exempted from Taxes by IRS for Ohio Train Derailment Victims; Norfolk Southern’s $107M Relief Detailed! (PHOTO: WLWT)

East Palestine Residents Consider $600M Settlement

Furthermore, the IRS choice is good news for East Palestine still fixing things after the train accident. Americans there are thinking about taking some money from Norfolk Southern‘s $600 million deal or suing by themselves. The Transportation Safety Board is looking into what made the crash happen and will talk about it in East Palestine soon.

READ ALSO: $3,500 And $12,000 Rumors Debunked; Meanwhile, Costco Sells Gold Bars For $1,300 And Up, Hopes To Lure Shoppers With More Than Just Bulk Deals!