New legislation aims to provide a “no-brainer” lifeline for disaster victims, allowing them to claim casualty losses without itemizing.
A bipartisan effort led by Rep. Greg Steube (R-Fla.) and Sen. Rick Scott (R-Fla.) seeks to extend critical tax relief for victims of federally declared disasters.
On Monday, Rep. Steube introduced the Federal Disaster Tax Relief Act in the House, with a companion bill introduced by Sen. Scott in the Senate. This legislation would extend a 2024 law, enabling those affected by natural disasters to claim personal casualty losses without being required to itemize deductions through the end of 2026.
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Bipartisan Support Highlights Importance of Relief
“Allowing taxpayers to write off damages from natural disasters is a no-brainer,” said Rep. Steube, highlighting how millions of Floridians have already benefited from the original law following recent hurricane seasons. He called the measure a “much-needed lifeline” for families in their time of need.
Sen. Scott agreed, noting that the legislation sends an “important message to families that their federal government is here to support them after disaster strikes.” He pointed out that the bill would also expand support to victims of wildfires, such as those that devastated parts of California.
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The bill’s co-sponsors in the House include Representatives Doug LaMalfa (R-Calif.), Mike Thompson (D-Calif.), and Jimmy Panetta (D-Calif.), further underscoring its broad appeal.
Rep. LaMalfa stated that families who lose their homes and livelihoods “shouldn’t be hit with the possibility of a tax bill on their equity,” while Rep. Thompson stressed the importance of ensuring survivors don’t have to fear whether they qualify for tax relief. Rep. Panetta added that the bill would give “disaster-impacted Americans the time and tools they need to rebuild and move forward.”
The 2024 law, which this new bill would extend, was a significant victory for disaster-stricken communities. It allowed taxpayers to claim disaster-related losses without needing to meet the usual requirement that such losses exceed 10% of their adjusted gross income.
This new bill aims to ensure that this vital support remains in place for years to come, providing certainty for those facing the long and difficult road to recovery.
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