As recovery work from Hurricanes Helene and Milton continues, the last thing on victims' minds is taxes. Representative Vern Buchanan (R-FL) is introducing a bill offering tax relief to these victims, giving them much-needed breathing space as they rebuild their communities.
Specifically, Rep. Buchanan's "Hurricane Milton and Helene Tax Relief Act" allows individuals who qualify for Earned Income Tax Credit (EITC) to use their 2023 income to file for 2024's tax season, meaning their taxes will not be modified based on the loss suffered due to the recent storms.
Other provisions raise the penalty-free withdrawal from savings accounts for disaster expenses from $22,000 annually to $100,000 for tax years 2024 and 2025, remove the 10% adjusted gross income (AGI) subtraction from total casualty losses and incentivize hurricane relief effort donations by raising the charitable donation cap from 60 percent to 100 percent of adjusted gross income.
"Our constituents deserve the full support of the federal government as they work to recover and rebuild from these two devastating hurricanes, which hit within two weeks of one another. Many of my constituents incurred thousands of dollars in disaster-related expenses, with some losing everything, and the burdensome tax code should be the last thing standing in their way of receiving the support they need. I'm pleased to be joined by so many of my colleagues in introducing this critical legislation to provide commonsense solutions to help those still suffering and am hopeful that Congress can come together and support my proposal with broad bipartisan support," said Rep. Buchanan in his press release.
Representative Greg Steube (R-FL), a vital bill cosponsor, added, "Floridians take on disaster recovery and rebuilding expenses through no fault of their own. That's why I've worked to deliver tax relief since Hurricane Ian with my House-passed Federal Disaster Tax Relief Act. I'm glad to support the Hurricane Milton and Helene Tax Relief Act, which eliminates the 10 percent adjusted gross income threshold requirement for claiming casualty loss deductions. This piece of our tax code has plagued Floridians for years, and this provision will be a welcomed, permanent change."
