Tax Fairness for Disaster Victims Act

This bill lets people in federally declared disaster areas choose to use their previous year’s earnings when figuring certain tax credits if their income dropped in the disaster year. It also lets them use their previous year’s Social Security taxes for those credit calculations. This choice does not change taxable income; it only affects how the credits are figured.

You’re covered if your main home, on the first day of FEMA’s listed disaster period, was in the disaster area. For joint returns, if either spouse qualifies, the couple can use their combined prior‑year earnings and Social Security taxes for the calculation. The IRS can treat mistakes in using this rule as simple math or clerical errors. These changes apply to tax years that start after the law takes effect .

• Who is affected: People whose main home was in a FEMA‑declared disaster area on the first day of the disaster period; joint filers qualify if either spouse does.
• What changes: Option to “look back” to last year’s earnings and Social Security taxes to figure certain credits when the disaster year’s amounts are lower; this doesn’t change your taxable income overall.
• When: For tax years beginning after the law is enacted; mistakes can be treated as math/clerical errors by the IRS.