Changes tax rules for disaster losses and makes wildfire aid tax-free for a limited time.
This bill would change how people get tax relief after major disasters. It would let individuals deduct certain disaster losses even if they take the standard deduction, but also raise the minimum loss amount for some deductions. It would also make qualified wildfire relief payments tax-free for a limited time.
Today, individuals can only deduct personal casualty losses if they list out their deductions and the losses are more than $100 and 10% of their income after certain deductions. Compensation for wildfire losses might be taxed. If this bill passes, people affected by major disasters could deduct certain losses even with the standard deduction, and the 10% income rule would not apply. However, the first $500 of some disaster losses would not be deductible. Also, qualified wildfire relief payments would be tax-free for a few years.
HR 5366 · 119th Congress · AI Summary by gemini-2.5-flash · 10/10
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3 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.