Tax question concerning grants?

Question

Due to our flooding, I received some grants for repairs and replacement of items lost. We received three from my wife's workplace and one from FEMA. Are these grants considered income and taxed as such?

Answer 1

These grants are not considered taxable income, but the amount of any such grants must be subtracted from any associated casualty loss you might be deducting on Form 4684 and Schedule A of Form 1040.

Answer 2

Grants of any kind normally aren't taxable, but I'd call or stop by the www.irs.gov website to make sure.