A Texas Congressman who has been at the forefront of the tax reform issue in Washington wants to extend additional relief to people who live in areas affected by Hurricanes Harvey, Irma, and Maria.
Woodlands Republican Kevin Brady – Chairman of the House Ways and Means Committee - will introduce a bill Monday to provide comprehensive tax relief to those affected by the devastating storms. In a statement he said:
My bill specifically helps hurricane victims keep more of their paycheck, deduct more of the cost of their expensive property damage, and have more affordable and immediate access to money they have saved for their retirement. The legislation will also encourage even more Americans to donate generously to help those in need. Taken together, these tax relief measures will help more people be able to bear the tremendous expense of recovering from these destructive hurricanes.”
The bill would allow a tax deduction for all personal casualty losses (current law only allows taxpayers to itemize if the loss exceeds 10% of their Adjusted Gross Income). It would also give them penalty-free access to their retirement accounts to cover expenses and rebuilding costs.
The measure also encourages charitable giving, by temporarily suspending the limitations on the deduction for donations to hurricane related causes through the end of the year.