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Tax Relief for Major Disasters and Wildfire Compensation

This law makes it easier for citizens affected by major federally declared disasters to claim tax deductions for their personal losses. Crucially, it allows people who use the standard tax deduction to still claim these disaster losses, broadening relief access. Additionally, certain payments received as compensation for losses or damages resulting from qualified wildfires are officially excluded from taxable income until 2031.
Key points
If you suffer personal losses from a major disaster declared between July 2025 and January 2027, you can deduct these losses on your taxes, even if you take the standard deduction.
Compensation received for losses (including lost wages or emotional distress) due to qualified wildfires (since 2014) is generally tax-free income until 2031.
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Introduced
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Additional Information
Print number: 119_HR_5366
Sponsor: Rep. Steube, W. Gregory [R-FL-17]
Process start date: 2025-09-15
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Federal Disaster Tax Relief Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5366.

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 2025-09-15.

What are the main provisions?

Key points include:

  • If you suffer personal losses from a major disaster declared between July 2025 and January 2027, you can deduct these losses on your taxes, even if you take the standard deduction.
  • Compensation received for losses (including lost wages or emotional distress) due to qualified wildfires (since 2014) is generally tax-free income until 2031.
What is the specific legal status?

The current status is Introduced.

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. Steube, W. Gregory [R-FL-17].

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 2025-12-23.

CATEGORIES

Taxes