(Washington, D.C.) Rep. Jill Tokuda (HI-02) and Sen. Mazie Hirono (HI) recently introduced the Natural Disaster Tax Relief Act of 2023. The bill would lessen the tax burden on people impacted by major natural disasters in 2023. It would allow more individuals impacted by the wildfires to claim a personal casualty loss by eliminating the requirement to itemize deductions and removing the 10 percent loss requirement to qualify. It would also waive the 10 percent penalty on hardship withdrawals from retirement accounts to help those impacted by the fires make ends meet.
“Our Maui ohana have been through enough. This bill helps victims of the fires reduce their tax burden and penalties as they seek to recover and rebuild. Having the cash and financial resources they need goes a long way in supporting themselves and their families,” said Rep. Jill Tokuda.
“As communities on Maui continue to heal and recover from the devastating wildfires, this bill will help provide relief to those who have lost so much as a result of this disaster,” said Senator Hirono. “By easing the financial burden on those impacted by the wildfires, as well as other disasters across our country, the Natural Disaster Tax Relief Act will help bring some peace of mind for families and individuals and help ensure they have the necessary resources to support themselves.”
The bill is also cosponsored by Sen. Brian Schatz (HI) and Rep. Ed Case (HI-01).
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