arrow_back Back to App

Tax Deductions for Emergency Savings Accounts

This act introduces a tax deduction for contributions to special emergency savings accounts, designed to cover expenses related to disasters, public health emergencies, or unemployment. This allows citizens to more easily build a financial safety net for unforeseen circumstances while reducing their income tax.
Key points
Allows a tax deduction of up to $5,000 annually for contributions to an emergency savings account.
Funds from the account can be used for qualified disaster expenses (e.g., home repairs, shelters), public health emergency expenses (e.g., childcare, healthcare costs, utilities), and unemployment-related expenses (up to $500 annually).
Withdrawals from the account for qualified expenses are not taxable, providing an additional financial benefit during difficult times.
Imposes penalties for withdrawals from the account for non-qualified purposes, ensuring funds are used as intended.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_HR_1449
Sponsor: Rep. Cloud, Michael [R-TX-27]
Process start date: 2021-03-01
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Emergency Savings Accounts Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_1449.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-03-01.

What are the main provisions?

Key points include:

  • Allows a tax deduction of up to $5,000 annually for contributions to an emergency savings account.
  • Funds from the account can be used for qualified disaster expenses (e.g., home repairs, shelters), public health emergency expenses (e.g., childcare, healthcare costs, utilities), and unemployment-related expenses (up to $500 annually).
  • Withdrawals from the account for qualified expenses are not taxable, providing an additional financial benefit during difficult times.
  • Imposes penalties for withdrawals from the account for non-qualified purposes, ensuring funds are used as intended.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Cloud, Michael [R-TX-27].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Benefits