IDR Releases Updated Tax Guidance: Disaster Emergency 2025

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The tax relief is part of a coordinated federal response to the damage caused by Hurricane Milton and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.
The IRS ultimately determines whether you qualify for debt forgiveness. However, the agency generally considers taxpayers who meet these criteria: a total tax debt balance of $50,000 or less, and a total income below $100,000 for individuals (or $200,000 for married couples).
Form 8915-F is a forever form. The same Form 8915-F is used for distributions for qualified 2020 disasters (and qualified 2021 and later disasters) and for each year of reporting of income and repayments of those distributions.
The newly enacted Federal Disaster Tax Relief Act of 2023 allows individual taxpayers affected by federally declared disasters to deduct personal casualty losses without itemizing deductions and without the typical reduction of $100 per casualty loss and 10% of adjusted gross income.
Qualified disaster losses can be claimed on Form 4684. For more information, see Qualified disaster loss , later. Qualified wildfire relief payments.
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Who are affected taxpayers? Affected taxpayers are defined as: Individuals whose principal residence is located in a covered disaster area and their spouse, if filing jointly. Business entities or sole proprietors whose principal place of business is located in a covered disaster area.
How to claim the disaster loss deduction on your tax return File your tax return. e-file. Use the disaster code from the List of disasters for California. Paper. Include or attach: A clearly written statement to your loss documentation that indicates: The date of the disaster.
Purpose of Form Use Form 4684 to report gains and losses from casualties and thefts. Attach Form 4684 to your tax return.

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