HURRICANE KATRINA TAX RELIEF
Submitted by Martha Matthews, Senior Tax Specialist, IRS
Emergency tax relief was enacted for individuals affected by Hurricane Katrina. The tax benefits provided by this relief include the following:
Suspended limits for certain personal casualty losses and cash contributions.
An additional exemption amount if you provided housing for a person displaced by Hurricane Katrina.
Election to use your 2004 earned income to figure your 2005 Earned Income Tax Credit and additional Child Tax Credit.
Increased charitable standard mileage rate for using your vehicle for volunteer work related to Hurricane Katrina.
Special rules for withdrawals and loans from IRA’s and other qualified retirement plans.
Congress was considering additional tax relief for individuals affected by Hurricanes Katrina, Rita and Wilma. For more details and to find out if this legislation was enacted go to www.irs.gov or see Publication 4492 which should be available in January.