A bill backed by Oregon’s U.S. Sen. Ron Wyden to relieve natural disaster survivors from paying federal income taxes on their recovery settlements and lawyers fees has passed in the Senate by unanimous consent.
Background
The bipartisan Federal Disaster Tax Relief Act allows disaster survivors to more easily deduct from their federal income taxes the cost of any uninsured or uncovered property losses and makes disaster settlement payments nontaxable, including any portion of awards that cover lawyers’ fees, living expenses, lost wages, or compensation for injury, death, or emotional distress.
The tax relief applies to people who have survived a wildfire since 2016. It technically expired at the end of 2025 after Wyden was unable to get lawmakers to take a vote on it before Congress recessed for the year.
Next Steps
The act already passed the House and goes to the White House for final signature by President Donald Trump.
Original reporting: Homepage – Lookout Eugene-Springfield — read the source article.
