Tax Tip #321

For qualified disaster-related personal casualty losses, individuals can deduct the loss without itemizing. It eliminates the 10% adjusted gross income threshold and applies a $500 per disaster floor. 

This relief applies to major disasters with incident periods beginning on or after 12/28/19 and before 1/1/27, effective for taxable years beginning after 12/31/24. 

For payments received in taxable years beginning after 12/31/25, the Act excludes qualified wildfire relief payments from gross income for wildfires federally declared after 12/31/14 and before 1/1/27.