The Bipartisan Budget Act of 2018 that was signed into law on February 9 included an extension of the expired extender provisions and the same tax relief provisions for California wildfires that was given to victims of the hurricanes as follows:
Extender Provisions that Affect Individuals
The following expired federal provisions that affect individuals were extended for one year (2017):
Extended for more than one year:
California Wildfire Tax Relief
The following tax provisions that provide relief for taxpayers affected by the California wildfires that occurred on or after October 8, 2017 for 2017 federal tax returns.
Deduction for Personal Casualty Losses
Uncompensated losses in the applicable California wildfire disaster area:
Special Rule for Determining 2017 Earned Income for the Earned Income Tax Credit and Child Tax Credit
Qualified individuals may use their earned income from 2016 to determine their earned income tax credit and their child tax credit for their 2017 federal income tax return if their 2017 earned income is less than their 2016 earned income.
Qualified individuals are those whose principal place of abode was located in the California wildfire disaster zone or they lived in the California wildfire disaster area or they lived in applicable California wildfire disaster are and they were displaced from their home because of the wildfire.
Penalty-Free Access to Retirement Funds
Charitable Contributions for Hurricane Relief
Suspends the limitation on charitable contributions associated with California wildfire relief that are made between October 8, 2017 and December 31, 2018.
Reminder of 2018 Itemized Deduction Changes
January 16, 2019
Qualified Business Income Deduction (20% Deduction for Certain Pass-Through Income)
January 9, 2019
Reminder of Form 1040 Redesign
January 2, 2019
Important Reminders for the Upcoming 2019 Filing Season
November 28, 2018
2018 Changes to Form 8867 (Preparer Due Diligence Checklist)
November 9, 2018
2018 Depreciation Changes
October 18, 2018