Deadline to File: May 1, 2025
There is important tax relief available for individuals affected by federally declared disasters, particularly those that occurred between 2021 and 2024.
Under special provisions passed quietly by federal lawmakers at the end of 2024, individuals may deduct personal disaster losses even if they don’t itemize their deductions.
These uninsured personal losses must exceed a $500 threshold, but do not require the usual 10% of adjusted gross income (AGI) offset. The resulting net loss is treated as an additional standard deduction for taxpayers.
Although this relief applies mainly to pre-2025 tax years, many people remain unaware of the benefit due to the timing of the law’s passage.
If you experienced losses due to a federally declared disaster in 2024, you have the option to apply these rules on either your 2023 tax return or your 2024 Form 1040.
For losses from disasters in 2021 through 2023, you may also choose to amend those tax returns if it provides a tax advantage.
Taxpayers are encouraged to speak with a tax professional to determine eligibility and potential benefits. The filing deadline is May 1, 2025. For more information, visit irs.gov or contact your local tax advisor.
Information provided by Liz’s Income Tax Service
Author: Tracy Sanders
