Tax Relief is one of our most treasured gifts to the American people. When we are hit with a Tax related emergency, we want to do what we can to minimize the pain and suffering. There are many options that you may explore to avoid a Tax Relief nightmare. But as with all things, do your homework. If you know that you will be affected by a Tax Relief situation, you need to act quickly and not wait until the situation becomes dire. Here are several tips to help you with tax relief:
Tax Relief for Hurricane Katrina victims-The Tax Relief program enacted in 2005 provides tax relief to individuals and families who were harmed or faced financial hardships as the result of Hurricane Katrina. Tax Relief programs are available for individuals and families who incurred expenses associated with the damage, loss, and/or theft of personal property, as well as business-related expenses. Tax Relief for Hurricane Katrina victims is still in effect as of this writing. Be sure to review your federal tax returns for the year before filing to determine if you qualify for tax relief. Additional information regarding tax relief is available at the IRS website, at the Florida Department of Revenue, at the Florida Office of Legal Services website, and at the Government website.
Hurricane Florence Tax Relief – The Tax Relief Act was specially enacted to assist in the recovery efforts following Hurricane Florence. Tax Relief for Florence victims is a specific program offered under the Flood Insurance Trust Fund and the Home Affordable Program. The Tax Relief Act provides tax relief to victims in various forms. Some of these forms are based on income and some on cost of living. For eligible victims, taxpayers may claim a deduction on their income tax returns for the taxable income period that is equal to or less than the applicable threshold amount for that year. Claimants may also claim a deduction for medical expenses that are associated with the Hurricane Florence disaster if they were not employed by an employer for part or the full year.
The Tax Relief Act also provides tax relief to taxpayers who lost everything they owned as a result of the disaster. In addition to property, some items may be excluded, depending on the state and local governments. In most instances, if a taxpayer owns jewelry, artwork, antiques, or other collectable items, he or she may be able to claim tax relief based on the fair market value. Certain items, such as automobiles and boats, are excluded from this category, but may be claimed for certain other reasons.
The Tax Relief for Americans program offers additional tax relief benefits for individuals impacted by natural disasters designated as Priority Areas. For example, cities designated as “Regional Priority Areas” by the Federal Emergency Management Agency (FEMA) are not eligible for tax relief in the event that a city has declared a disaster. Those taxpayers whose homes were destroyed by a federally designated “fire disaster” are also not eligible for tax relief, even if their mortgage loan was originated through a lender who is listed on the Schedule 15 Streamline Release Schedule. Those homeowners whose rental income covers the entire cost of their house are also not eligible to apply for this tax relief.
Taxpayers should keep in mind that in order to receive benefits from the Tax Relief for Americans Plan (TRAX), they must be living in the affected area for a full year. If they move after the year is over, they lose their eligibility for the relief. The Tax Relief for Americans Plan was created to help offset the impact of natural disasters on low- and middle-income families. Because it offers so much assistance, it is the very best thing any American can do to help alleviate the suffering of his or her community.