April Showers Have Passed, but Have the Tax Implications?

President Trump approved federal disaster assistance for the state of Kansas in June 2019 to aid in recovery efforts following severe storms, damaging winds, tornadoes, floods, landslides, and mudslides earlier in the year.  As a result, federal funding became available to state, eligible local governments, and some private nonprofit organizations for emergency work and repair efforts in numerous Kansas counties.

Counties Impacted by Disaster Declaration in Kansas

The following counties were included in the FEMA disaster declaration: Allen, Anderson, Atchison, Barber, Barton, Butler, Chase, Chautauqua, Cherokee, Clark, Clay, Cloud, Coffey, Cowley, Doniphan, Elk, Ellsworth, Franklin, Geary, Greenwood, Harper, Harvey, Hodgeman, Jefferson, Kingman, Leavenworth, Lincoln, Linn, Lyon, Marion, Marshall, McPherson, Meade, Montgomery, Morris, Nemaha, Neosho, Osage, Ottawa, Pawnee, Phillips, Pottawatomie, Pratt, Reno, Rice, Rush, Russell, Saline, Sumner, Wabaunsee, Washington, Wilson, and Woodson

Though April showers may seem far behind us, there may be tax implications for the upcoming filing season.  Given you meet certain criteria, some taxpayers may be eligible for additional deductions based on expenses paid for reparations. 

Standard Deduction vs. Itemizing

To qualify for additional deductions, you must be able to itemize your tax return.  To itemize, you must exceed the standard deduction of $12,200 for single taxpayers, $18,350 for head of household, and $24,400 for married couples filing jointly.

Keep Those Receipts

As you gear up for the next income tax filing year, make sure to locate the receipts for all disaster repair expenses.  These records are the key to determining if you qualify for additional deductions.  For questions or more information, please contact your Adams Brown advisor.