Are VCF Awards Taxable? A 9/11 Attorney Explains
Is Victim Compensation Taxable?
No, victims who have received money from the World Trade Center Victim Compensation Fund (VCF) do not have to report their restitution on their federal income taxes. Under Code Section 26 U.S.C. 39(f), payments from the VCF to victims suffering physical injury or death are tax-free.
What does that mean for you? When you are filing your taxes in the year that you received money from the fund, you do not need to include information about your VCF restitution. It will not count as income for the year or impact your tax bracket. This information is particularly useful in light of the COVID-19 pandemic, which has caused tax deadlines to generally be extended.
About Victim Compensation Fund Eligibility
The 9/11 Victim Compensation Fund, or “VCF,” provides compensation to:
- Persons, or their personal representatives if they are deceased, who were
- Present at the World Trade Center, the Pentagon crash site, or the Shanksville, PA crash site,
- From September 11, 2001, to May 30, 2002, and
- Have been diagnosed with a 9/11-related illness.
The VCF is available to not only first responders, but also to those who worked or volunteered in construction, clean-up, and debris removal, as well as people who lived, worked or went to school in the above-described exposure zones.
The July 2019 signing of the “Never Forget the Heroes, James Zadroga, Ray Pfeifer, and Luis Alvarez Permanent Authorization of the September 11th Victim Compensation Fund Act” fully funded the VCF to pay all eligible claims and further extended the filing claim deadline to October 1, 2090. The purpose of this law was to recognize the sacrifices of the responders, workers, and survivors in a financially meaningful way.
Questions About the VCF? Speak with a 9/11 Attorney
At Pitta & Baione, we understand the difficulties survivors and their families face when they’ve become ill as a result of 9/11 toxic dust exposure. It’s why we started our 9/11 attorney law firm. We are committed to representing our fellow New Yorkers to secure all of the compensation your sacrifices have entitled you to.
An experienced 9/11 attorney at Pitta & Baione can help you with the VCF award process and answer any questions you have about your rights. Do not hesitate to contact us toll-free at 844-982-2667 if we may be of service.