he Federal Disaster Tax Relief Act of 2023 Is Now Law

After two years of hold-up, the Federal Disaster Tax Relief Act officially took effect on December 12, 2024. The new law offers tax relief for many natural disaster victims, delivering relief to communities across the nation, whether they're recovering from a flood, tornado, hurricane, wildfire, or other tragedy. The law makes settlements for disaster victims tax-free, allows them to claim losses without itemizing deductions, and eliminates the burdensome 10% Adjusted Gross Income (AGI) threshold for claiming those losses.

The Federal Disaster Tax Relief Act applies to federally qualified disasters dating back to February 2021, and provides relief for Hurricanes Ian, Milton, Helene, Idalia, Debby, Nicole and Fiona. Relief also applies to the Maui Wildfires, recent California wildfires, and the Ohio Train Derailment. Also included are federally qualified disasters that may be declared up to 60 days after the law’s enactment.

Please contact your tax preparer or accountant for professional guidance regarding: Floridians who need to retroactively claim disaster-related losses for the 2021, 2022, and/or 2023 tax years will need to file an amended return for that year and Floridians who need to claim disaster-related losses for the 2024 hurricane season will be able to do so on their 2024 taxes.

Finally! Real help for families and businesses working to rebuild!