Us Congress House Bill HB2619

Us Congress 2023-2024 Regular Session

• Introduced: 4/13/23
• Refer: 4/13/23

Caption

Tax Fairness for Disaster Victims Act

Impact

The bill specifically modifies Section 32 of the Internal Revenue Code, impacting how earned income and social security taxes are calculated for those affected by federally declared disasters. By enabling taxpayers to use their previous year's income for tax credit calculations, the legislation directly addresses the financial hardships faced by individuals in disaster-stricken areas. This change is anticipated to support recovery efforts and stabilize the financial situation of affected households during challenging times, reinforcing the federal government's commitment to disaster relief.

Summary

House Bill 2619, titled the ‘Tax Fairness for Disaster Victims Act’, seeks to amend the Internal Revenue Code of 1986 to introduce a lookback rule for individuals affected by federally declared disasters. The primary purpose of this bill is to allow qualified individuals to determine their tax credits based on earned income from the previous taxable year if their income has decreased in the current year due to the disaster. This measure aims to provide financial relief to disaster victims by ensuring they do not lose necessary tax benefits due to short-term income losses following a disaster.

Contention

While the bill is primarily focused on providing tax relief, it may face scrutiny concerning its implementation. Questions could arise about the effectiveness of the lookback rule and its potential administrative complexities. Critics may argue that relying on previous income calculations could complicate the tax process for affected individuals, potentially leading to confusion or errors in tax filings. Furthermore, the definition of 'qualified individual' and the criteria for determining eligibility could also become points of debate, impacting its overall acceptance among lawmakers.