WASHINGTON, DC – Today, Congressman Neal Dunn (FL-02) applauded the House passage of tax extenders and disaster tax relief as part of the compromised government funding bill. Dr. Dunn has been fighting for routine disaster tax relief since Hurricane Michael hit the Panhandle in October 2018.
“The passage of these crucial tax extenders is a big win for Hurricane Michael victims who are still picking up the pieces more than a year later. We finally got routine disaster tax relief across the finish line. This important legislation allows disaster victims to access money they have saved over the years without facing penalties and temporarily suspends limitations on charitable contributions to our area that are associated with hurricane relief,” said Dr. Dunn. “We still have a lot of rebuilding to do in the Panhandle, but the passage of this tax relief is an important part of the process.”
After Hurricane Michael devastated the Panhandle, Congressman Dunn introduced The Hurricane Michael Tax Relief Act. This legislation would allow individuals affected by the Category-5 storm penalty-free early access to their retirement savings and helps employers and businesses within the disaster area. Specifically, the bill would allow for penalty free withdrawals from retirement plans, make it easier to qualify for personal casualty loss deductions, provide tax relief to help businesses retain employees, temporarily suspends limitations on charitable contributions associated with hurricane relief, and grants taxpayers the option to refer to earned income from the previous year for determining the Earned Income Tax Credits and Child Tax Credits.
While the filing for the 2018 tax year has passed, individuals have the option to amend their 2018 tax returns. Talk to your tax professional about filing an amended return if you had storm related losses.