WASHINGTON – Congressman Pat Ryan (D, NY-18) is leading the charge to pass the “Federal Disaster Tax Relief Act,” legislation that would deliver economic relief to disaster victims across the country, including Hudson Valley families impacted by last July’s catastrophic flood.
Ryan delivered the 218th signature on a House discharge petition to override Speaker Mike Johnson’s block on the bill and force a vote on it on the House floor. It was the first successful discharge petition since 2015.
The legislation would provide direct tax relief for victims of flooding and applies retroactively, meaning that victims of the July 2023 floods would be eligible, as well as victims of Hurricane Ida.
“For many families in Orange County, last year’s devastating flood is a nightmare that continues to this day – they’re facing a huge economic burden they can’t possibly shoulder alone. The federal government needs to step up. That’s why I’ve kept pushing to force this bill onto the House floor, and today, proudly led a wide bipartisan majority to deliver desperately needed relief,” said Ryan.
Under current law, tax deductions for personal casualty loss are only available if the losses exceed 10 percent of the taxpayer’s adjusted gross income. Current law also requires deductions to be itemized to access any relief. The Federal Disaster Tax Relief Act would remove those barriers, allowing above-the-line tax deductions for personal casualty loss regardless of income, and without the need for itemization. For example, without this legislation, if a married couple making $90,000 suffered $20,000 in uninsured casualty losses, they would only be able to claim the standard deduction of $29,200.
With this legislation, the couple would also be able to claim a $20,000 deduction for the casualty losses, leading to a nearly $50,000 reduction to their taxable income.
This legislation, if signed into law, would apply retroactively to major disasters, meaning that victims of the July 2023 floods would be eligible, as well as victims of Hurricane Ida.
