If a natural disaster has damaged your home or personal property, you may be entitled to more tax relief than you think. Recent legislation, including the One Big Beautiful Bill Act and the Doug LaMalfa Federal Disaster Tax Relief Certainty Act, has significantly expanded the personal casualty loss deduction. These changes temporarily remove two major hurdles that previously prevented many taxpayers from benefiting: the 10% of adjusted gross income floor and the requirement to itemize deductions. Additionally, eligible wildfire victims may now be able to exclude qualifying relief payments from taxable income, with no payment deadline. Understanding whether you qualify and how to claim your deduction could make a meaningful financial difference.

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