Federal Disaster Tax Relief Act of 2023
Hurricane Milton, Helene, Debby, Fiona, Nicole, Idalia, Ian
California Wildfires
East Palestine, Ohio Train Derailment
On December 12, 2024, the Federal Disaster Tax Relief Act of 2023 (H.R. 5863) was signed into law. It allows individual taxpayers to deduct personal casualty losses for presidentially declared major disaster areas that occurred between January 1, 2020 and February 10, 2025 without qualifying to itemize deductions and not requiring the casualty loss to be reduced by 10% of adjusted gross income (AGI) plus $100. Instead, the casualty loss is only reduced by $500. The 10% AGI reduction is eliminated.
This disaster tax relief will apply to Hurricane Milton, Helene, Debby, Fiona, Nicole, Idalia, and Ian. It will also apply to the California Wildfires and the Train Derailment in East Palestine, Ohio.
Disaster relief payments because of the California Wildfires and Train Derailment in East Palestine, Ohio can also be excluded from gross income.
Certain tax filing and tax payment deadlines have also been extended. Additional information can be found by clicking here.
