With the start of tax season, Nevada County’s congressman, Doug LaMalfa, is part of a bi-partisan group of lawmakers urging the IRS to expedite tax guidance for wildfire victims getting lawsuit settlement money from PG and E. A letter has been sent to the IRS commissioner. It says over one-billion dollars of the 13-billion dollar Trust Fund set up by the utility has been disbursed so far. And LaMalfa says these victims are struggling to decipher the tax code…
click to listen to Doug LaMalfa
Last year, LaMalfa had urged any wildfire victim settlement money not be taxed. But the letter says currently the taxability of each dollar within an award can change, depending on what type of loss is being claimed. For example, it says a claim based on a physical injury, as well as emotional injuries, is tax free. But it is taxed if it’s based on an emotional injury and any physical injuries connected to it…
click to listen to Doug LaMalfa
The mass settlement covers 70-thousand victims injured in the 2015 Butte Fire, the 2017 North Bay Wildfires, and the 2018 Camp Fire in Paradise. They’re entering the first tax season in which their awards may be taxable.
Jaime
After knowing congressman lamalfa accepted pge 13000 $ campaign funds without donating,it would be nice if I could deduct that amount from my tax burden owed to IRS from campfire damages.