HR 3975

This bill, the Tax Fairness for Disaster Victims Act, aims to provide greater tax relief to individuals affected by federally declared disasters. It establishes a ‘lookback’ rule that allows taxpayers who lost income due to a disaster to use their income from the year before the disaster when determining eligibility for certain tax credits, such as the Earned Income Tax Credit. This change is intended to ensure that disaster victims receive appropriate tax benefits based on their pre-disaster financial situation. The bill also addresses how these calculations are handled on tax returns.