Amending return for 2022 due to bill H.R. 4970

[Clw7]

Federal Disaster Tax Relief Act Signed Into Law

Good morning,

My spouse and I filed in 2022 and reported the wildfire relief payments we received.  I am unsure how to Amend our tax return, filed using Turbo Tax.

May I ask for assistance/instructions?  Below is a cut/paste of both H.R.5863 and H.R. 4970, which applies to our situation - exempting wildfire relief payments from federal income taxes.

December 12, 2024

Press Release

Washington, D.C.—Today, President Biden signed H.R. 5863, the Federal Disaster Tax Relief Act, into law. This legislation included Congressman Doug LaMalfa’s (R-Richvale) bill, H.R. 4970, Protect Innocent Victims of Taxation After Fire Act, which exempts wildfire relief payments from federal income taxes. The legislation also streamlines the process for deducting losses from various natural disasters and includes provisions to exempt taxation on legal fees, emotional distress, lost wages, and other expenses linked to wildfire losses. Taxpayers will now be able to claim refunds for any taxes paid on wildfire settlement funds since 2020 by filing an amended return or claiming the change in the next tax year

What This Means for Wildfire Survivors:

• Allows amended tax returns to be filed, by taxpayers who qualify for wildfire payment tax relief, up to a year after enactment – rather than being limited to three years after originally filing a tax return

[AmyC]

You will amend your 2022 tax returns to remove those payments. Once you remove it from the federal, it will flow into the CA. The federal and states have been updating their software.

See How do I amend my federal tax return for a prior year? and I need to amend my state return.

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