New Disaster Tax Relief Law Empowers Mississippi to Act Faster

Mississippi residents know all too well the devastation that can come from tornadoes, flooding, and hurricanes. Until recently, accessing federal tax relief after a disaster meant waiting for a presidential declaration, often delaying critical support. But thanks to new legislation, that wait is no longer necessary.

Under the Filing Relief for Natural Disasters Act (P.L. 119-29), states now have the authority to trigger federal tax relief measures through their own disaster declarations. This is a game-changer for Mississippi, where fast response is essential.

What This Means for Mississippi

·       State-Declared Disasters Now Qualify: The Treasury Secretary can extend federal tax deadlines based on state-declared disasters, provided the event is severe and FEMA is consulted.

·       Extended Relief Period: The window for tax relief has been expanded from 60 to 120 days, giving individuals and businesses more time to recover and regroup.

Casualty Loss Deduction Expanded (Effective 2026)

Another major win comes from P.L. 119-21, which updates the rules around casualty loss deductions:

·       Broader Eligibility: Starting in 2026, personal casualty losses can be deducted for both federally and state-declared disasters.

·       No FEMA Consultation Required: For this deduction, the Treasury will assess the severity independently, streamlining the process.

Why This Matters

For Mississippi, where natural disasters are a recurring threat, this legislation provides faster access to tax relief and financial recovery tools. The ability to deduct casualty losses and benefit from extended filing deadlines without waiting on federal bureaucracy means residents can begin rebuilding sooner. Stay informed and be sure to take advantage of these new provisions to help ease the financial burden when disaster strikes.