Federal Disaster Tax Relief Act of 2025

S 2744, the Federal Disaster Tax Relief Act of 2025, changes tax rules for individuals affected by qualifying disasters. It allows higher deductions for personal casualty losses from disasters declared after July 4, 2025, and before January 1, 2027, by increasing the deductible amount above 10% of adjusted gross income. The bill also creates a new tax exclusion for wildfire relief payments received between 2026 and 2030, excluding these payments from gross income while preventing double benefits for the same losses. These provisions directly affect individuals in federally declared disaster areas who incurred losses during specified periods.