Opens in a new tab

Tax relief for terrorist attack victims and their families

September 11, 2014

This still painful anniversary of the Sept. 11, 2001, attacks on U.S. soil is underscored today by the recent killings of Americans abroad by Islamic State terrorists.


President Barack Obama, dignitaries, Sept. 11 survivors, rescuers, and victims' relatives marked the opening of the 9/11 Memorial and Museum at Ground Zero in New York City on May 15. Video courtesy Channel 2, CBS, New York via YouTube.

As we and our lawmakers debate the next steps in the continuing war on global terrorists, we also must cope with the realities of life going on amid such terrible chaos.

Taxes and terror: Taxes are a part of that continuum. So the Internal Revenue Service has put together a special Web page and this month revised Publication 3920, Tax Relief for Victims of Terrorist Attacks. Each details the available tax relief for victims of terrorist attacks and their families.

In general, victims, survivors and some dependents of those killed during the attack 13 years on the World Trade Center Towers, the Pentagon and United Airlines Flight 93 that crashed in Pennsylvania may be eligible to claim certain types of tax relief.

That same possible tax relief also is available to those affected by the Oklahoma City bombing in 1995 and the 2001 anthrax terrorist attacks.

Here, according to the IRS, are the basics of the various terror-related tax relief provisions.

Disability payments to survivors: Disability payments, including Social Security Disability Insurance (SSDI) payments, aren't taxable if they're for injuries incurred as a direct result of any terrorist attack against the United States or its allies.

However, taxpayers must include in income any disability payments received or that would have been received in retirement if the individual hadn't become disabled as a result of a terrorist attack.

Tax forgiveness for those who died: Federal income tax liabilities of people who died from wounds or injuries related to the Oklahoma City or Sept. 11 attacks are forgiven. Federal income tax liabilities of people who died from an illness related to the 2001 anthrax attacks are also forgiven.

Income tax is forgiven going back to 2000 (1994 for victims of the Oklahoma City attack) whether a person was killed in an attack, died later as a result of an attack or by participating in rescue or recovery operations.

Minimum amount of relief: A minimum of $10,000 in relief is provided if the deceased person's total tax forgiveness is less than $10,000. Publication 3920 has more on which years are eligible for a credit or refund.

If you have specific questions about tax forgiveness, payments to survivors or disability payments related to a terrorist attack, you can call the IRS Special Services Hotline toll-free at 866-562-5227. The telephone line is open Monday through Friday from 7 a.m. to 7 p.m. local time.

Our thoughts and prayers go out to all the victims and their families. So do our fervent hopes that one day soon such tax considerations won't be necessary.

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
confused office worker
8 workplace benefits questions to ask this enrollment season

October 26, 2026

Millions of U.S. workers are now deciding what workplace benefits, some of which also offer…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment