I received a one-time cash payment for Relocation Assistance under the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970. My question is, do I have to report this extra income on my Federal and State Tax? Do I need to consider this as extra income on my 2006 Tax Filing? My previous rental place changed to a Section 8 project and I was asked to move out since I did not qualify within the eligible income range. I was forced to find another rental property at a higher price. I was given a check for several thousand dollars by my previous apartment mangers. They said I was eligible for Relocation Assistance that came under the Federal URA Act and it included payment for Moving Expenses and Replacement Housing Payment. They calculated the monthly difference on my current rental and my previous rental and paid my 42 times that amount according to law. Thanks for any assistance you could offer.
Tapas
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