On September 29, 2017, President Trump signed the Disaster Tax Relief and Airport and Airway Extension Act of 2017 into law. This tax relief initiative is designed to provide certain tax benefits for victims of Hurricanes Harvey, Irma and Maria. The legislation also contains provisions extending the funding authorizations for the Federal Aviation Administration, the Teaching Health Center Graduate Medical Education Program and the Special Diabetes Program for Indians.
Targeted Tax Relief for Those Hardest Hit
Hurricanes Harvey, Irma and Maria caused hundreds of deaths either directly or indirectly and are estimated to cost hundreds of billions of dollars in economic impact and rebuilding costs. The most important tax provisions of the new law include the following:
• Taxpayers no longer must itemize deductions to take advantage of tax relief initiatives.
• The Disaster Tax Relief legislation also eliminates the requirement that losses must constitute 10 percent of the adjusted gross income of victims of these hurricanes.
• Taxpayers will be allowed to use their earned income from 2016 to figure their Earned Income Tax Credit and Child Tax Credit for 2017.
• Victims of these hurricanes will be allowed to access funds in their retirement accounts to pay for disaster-related expenses without tax penalties.
• Charitable contributions related to hurricane relief before December 31, 2017, will not be subject to the current limits on tax deductions for these donations.
• Employers in hard-hit areas will receive a tax credit of up to 40 percent of the wages paid to employees during the duration of the crisis. This can add up to as much as $6,000 per employee for companies affected by these serious storms.
The new law is expected to provide significant tax relief for those most severely affected by the hurricanes and to provide economic support for families and businesses rebuilding in the aftermath of these natural disasters.
The Law Offices of Daniel M. Silvershein can help families determine their tax liabilities and can provide expert advice and guidance on the financial implications of this new legislation. We have more than two decades of experience in the federal and state tax field and can ensure that your case is resolved quickly and to your satisfaction. If you are currently facing financial difficulties or problems with the IRS, call us today at 888-382-7880 to schedule a free initial consultation. We are here to help you and your family.