Tax Relief for Victims of Severe Storms and Tornadoes.
This law provides income tax relief for individuals who receive financial assistance due to damages caused by severe storms, straight-line winds, and tornadoes declared as federal disasters after December 31, 2023. Compensation received for losses—such as property damage, medical costs, or additional living expenses—will not be counted as taxable income. This ensures that disaster victims keep the full amount of the relief payments they receive, provided the losses were not covered by insurance.
Key points
Financial aid received for losses from federally declared severe storm or tornado disasters (declared after December 31, 2023) is excluded from taxable income.
This tax exclusion covers compensation for property damage, lost wages (if not paid by the employer), personal injury, and additional living expenses.
The exclusion only applies to losses not covered by insurance or other compensation, and recipients cannot claim other tax deductions for the same expenses.
Expired
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