The Federal Disaster Tax Relief Act of 2023 (H.R. 5863) was signed into law on December 12, 2024, by President Biden. The Act can benefit individual taxpayers affected by federally declared disasters that began between December 28, 2019 and December 12, 2024, and ended no later than January 11, 2025.
The Act allows individual taxpayers to deduct personal casualty losses without itemizing deductions, eliminates the 10% AGI threshold, and allows each separate casualty to be deductible once the $500 minimum is exceeded.
To search for specific disasters that fall within the qualified period, visit the FEMA website at fema.gov/disaster/declarations
The Act also includes provisions for taxpayers who:
Received qualified wildfire relief payments during taxable years beginning after December 31, 2019, and before January 1, 2026.
Received qualified disaster relief payments from the East Palestine, Ohio Train Derailment received on or after February 3, 2023.
Please contact us if you have any questions or need additional information.