Q&A: Federal Disaster Tax Relief

Q&A: Federal Disaster Tax Relief

With U.S. Sen. Chuck Grassley

Q: What tax relief measures will help Iowans impacted by natural disasters get back on their feet?

A: Congress recently passed disaster tax relief legislation that will give eligible taxpayers a break on their federal tax bill. It allows for individuals impacted by a natural disaster in an area that received a major presidential disaster declaration - from December 2020 up to 60 days after enactment, as long as the disaster occurred on or before the date of enactment - to deduct personal casualty losses, to the extent they exceed $500 per casualty. The deduction is available to those who don't itemize their taxes and may be claimed in addition to the standard federal deduction. Impacted Iowans should consult their tax advisors about whether they qualify to take advantage of this relief. As a member of the tax-writing Senate Finance Committee, I was glad to support this tax relief proposal to help Iowans who suffered financial hardship through no fault of their own. In addition to visiting impacted communities, I keep in touch with residents, farmers, business owners and civic leaders as local communities across our state have worked hard to recover and rebuild from natural disasters.

Q: Which impacted counties in Iowa qualify for the federal disaster tax relief credit?

A: Iowans living in a county that received a major presidential disaster declaration from December 2020 up through 60 days after enactment, as long as the disaster occurred on or before the date of enactment of the law, will qualify for the federal disaster relief tax credit. To date, Iowa has received five major presidential disaster declarations during this time frame, including the following:

• Winter 2021. The first-ever derecho in December anywhere in the U.S. delivered severe thunderstorms and the most EF-2/F-2 or stronger tornadoes in a single day in Iowa since 1950. The following counties were included in a qualified disaster area: Appanoose, Audubon, Buena Vista, Calhoun, Cass, Cherokee, Davis, Emmet, Floyd, Franklin, Greene, Guthrie, Hamilton, Hancock, Howard, Humboldt, Mills, Mitchell, Palo Alto, Pocahontas, Sac, Van Buren, Webster, Worth, and Wright.

• Spring 2023. Major to moderate flooding impacted much of the Upper Mississippi River Valley from April 24 to May 13, 2023. The following counties were in a qualified disaster area: Allamakee, Clayton, Des Moines, Dubuque, Jackson, Lee and Scott.

• Spring 2024. April 26-27, 2024. At least 19 tornadoes swept across several counties, damaging homes and business across the region. The following counties were in a qualified disaster area: Clarke, Crawford, Harrison, Mills, Polk, Pottawattamie, Ringgold, Shelby, Union.

• May 20-31, 2024. Torrential rainfall, damaging winds and hail leading to widespread tree damage and power outages; EF-4 tornado damage in Greenfield; EF-3 damage in Adams County; EF-2 damage in Polk and Story Counties. The following counties were in a qualified disaster area: Adair, Adams, Buena Vista, Butler, Calhoun, Cedar, Cherokee, Clay, Dallas, Franklin, Hamilton, Hancock, Harrison, Humboldt, Iowa, Jackson, Jasper, Kossuth, Marshall, Mitchell, Montgomery, Muscatine, Polk, Pottawattamie, Poweshiek, Shelby, Story, Tama, Wright.

• June 16-July 23, 2024. Significant damage from severe storms, flooding, straight line winds and tornadoes. The following counties were in a qualified disaster area: Buena Vista, Cherokee, Clay, Des Moines, Dickinson, Dubuque, Emmet, Floyd, Harrison, Howard, Humboldt, Jackson, Kossuth, Lyon, Mitchell, Monona, O'Brien, Osceola, Palo Alto, Plymouth, Pocahontas, Pottawattamie, Scott, Sioux, Winnebago, Winneshiek, Woodbury, Worth, Wright.

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