December 27, 2019
Extender and Disaster Tax Relief Provisions Included in the 2020 Consolidated Appropriations Legislation
The 2020 Consolidated Appropriations Act that was signed into law on December 20 included restoring the expired extender tax provisions (that had expired at the end of 2017) for 2018 – 2020 and disaster relief provisions that cover all federally declared disasters that occurred in 2018 and 2019.
Most Relevant Extender Provisions
The following expired federal provisions that affect individuals were extended for 2018, 2019 and 2020:
Disaster Relief Provisions
The following disaster relief provisions were made available to taxpayers that were affected by a federally declared disaster that occurred in 2018 or 2019:
Deduction for Personal Casualty Losses
Uncompensated losses that occurred in a federally declared disaster area:
Special Rule for Determining 2019 or 2018 Earned Income for the Earned Income Tax Credit and Child Tax Credit
Qualified individuals may use their earned income from the preceding tax year to determine their earned income tax credit and their child tax credit if they lived in a federally declared disaster area in 2018 or 2019 as follows:
Qualified individuals are those whose principal place of abode was located in a federally declared disaster zone or they lived in applicable federally declared disaster area and they were displaced from their home because of the disaster.
Retirement Fund Provisions
Charitable Contributions for Disaster Relief
Suspends the limitation on charitable contributions associated with a federally declared disaster that are made in 2018 or 2019.
IRS will be making updates to the affected 2019 forms and instructions in the coming days and posting them to their website when they are finished so be on the lookout for the revised 2019 forms and instructions.
See the Amendment to the 2020 Appropriations legislation for more information.