Tax deductions

Kennedy Introduces Bill to Expand Louisiana Disaster Victims’ Access to Tax Deductions – News Releases

WASHINGTON – Senator John Kennedy (R-La.) Today introduced the Post-Disaster Loss Claims Act to help disaster victims qualify for tax deductions as a result of damage caused by disasters natural.

“In 2021, historic flooding, Hurricane Ida and a devastating winter storm all hit Louisiana families, and the year is not even over. Unfortunately for all Louisians trying to rebuild, current law limits tax deductions for victims of natural disasters. I introduced the Claiming Losses After Disasters Act to help more Louisianans cover reconstruction costs ”, Kennedy said.

This year’s historic winter storm caused Louisiana $ 20.8 billion in damage. The rains and floods caused damage of $ 1.4 billion. Hurricane Ida caused damage estimated at $ 64.5 billion. The combined damage from all of these disasters totals approximately $ 86.7 billion.

Under current law, personal injury tax deductions are limited to disaster victims until the end of 2025. In order for a person to qualify for tax deductions, however, the tax losses incurred must be greater than the sum of 10% of an individual’s adjusted gross income and $ 100.

The Post-Disaster Loss Claims Act would allow victims of a major federally declared disaster to claim a larger tax deduction for damage not covered by insurance. Specifically, Kennedy’s Bill would permanently waive the requirement that disaster losses must exceed 10% of a victim’s adjusted gross income for tax deductions to apply. Instead, a new minimum threshold of $ 500 loss per claim would apply before a person can claim a tax deduction.

The text of the Disaster Loss Claims Act is available here.

Leave a Reply

Your email address will not be published.