Louisiana hurricane victims lining up for government Road Home grants to rebuild their homes might be surprised to discover that, for some at least, there is a toll booth on the road to recovery.
The grants, which are averaging about $60,000, are not directly taxable. But the Internal Revenue Service says Road Home recipients who claimed a storm loss on their taxes last year should count the grants as income on their federal tax returns this year. That means some people will be thrown into lofty tax brackets they never dreamed of -- and pay more taxes too.
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