There’s good news for taxpayers who suffered casualty losses from disasters during earlier periods. Typically, losses can only be claimed when itemizing deductions on a tax return. However, the Federal Disaster Tax Act, signed by then-President Biden on Dec. 12, 2024, changed that. It allows eligible taxpayers to deduct personal casualty losses without itemizing if a presidentially declared disaster occurred between Dec. 28, 2019, and Dec. 12, 2024. The law also made other changes to casualty deductions during this period. Eligible taxpayers may be able to file amended returns for past years and receive refunds. The relief doesn’t apply to disasters after Dec. 12, 2024. Contact us for help.
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