Tax relief for people who lost everything in a fire

Economy
1

Tax relief for fire victims who lost all belongings in a fire and were allowed to sue (like 2018 camp fire) this is the thing. We lost everything we already paid taxes on. We were able to sue PG&e but most were awarded 1/3 of their losses. And have received 70% -33.3% for attorney fees. That means we got just under 40% of our awarded amount. California has made it so we are not required to pay state taxes, but what about federal taxes? We have already paid federal taxes on what we had before we lost it due to fire. The law suit got us Penny’s on the dollar amount of what we lost and now we are required to pay federal tax. So many people where denied assistance or didn’t qualify for it and now have an opportunity to rebuild their homes , businesses and lives. Or at least that’s what they thought. We shouldn’t be required to pay the federal taxes on settlement money if you lost everything and trying to rebuild, it’s not fair. Please take this in to consideration. We are just trying to rebuild our lives and it’s really expensive to do so. building permits are not cheap then you got school fees park and recreation fees. You have to hire engineers to draw things up for you. We’re into 30 $40,000 before you even get your permit. There’s gonna be people that got a little bit of money and will never be able to rebuild. Is it right for the government to take most of that money for taxes