Bill > HR3975

This bill, called the "Tax Fairness for Disaster Victims Act," amends the Internal Revenue Code to help taxpayers who live in areas affected by federally declared disasters. Specifically, the bill allows qualified individuals (those whose primary residence was in a disaster area during a federally declared disaster) to choose an alternative method for calculating certain tax credits like the Earned Income Tax Credit (EITC) and Child Tax Credit. If a taxpayer's earned income or social security taxes are lower in the year of the disaster compared to the previous year, they can opt to use their prior year's income and tax figures instead. This provides financial relief by potentially increasing tax credits during years when disaster impacts may have reduced a person's earnings. The bill applies to tax years beginning after its enactment and ensures that this election can be made for both individual and joint tax returns. Additionally, the bill allows the IRS to treat any incorrect use of this provision as a mathematical or clerical error for administrative purposes. The goal is to provide tax flexibility and support for individuals experiencing financial hardship due to federally recognized natural disasters.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3975/all-info