ABC News4/20/2026PoliticsUnited States
Wildfire Survivors Face Tax Burden on Settlements as Congress Deliberates
Thousands of Eaton Fire survivors who accepted utility settlements could owe taxes on payments unless Congress extends expired tax exemption
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- Thousands of 2025 Eaton Fire survivors in Altadena, California, who accepted upfront settlements from Southern California Edison face potential income tax on their payments after a tax exemption expired at the end of 2025.
- A bipartisan House bill to extend the tax relief passed committee last month but faces an uncertain timeline.
- Survivors accepting $700,000 settlements could owe 37% in taxes, threatening their ability to rebuild.
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Thousands of 2025 Eaton Fire survivors in Altadena, California, who accepted upfront settlements from Southern California Edison face potential income tax on their payments after a tax exemption expired at the end of 2025. A bipartisan House bill to extend the tax relief passed committee last month but faces an uncertain timeline. Survivors accepting $700,000 settlements could owe 37% in taxes, threatening their ability to rebuild. Similar challenges affect fire survivors in Colorado, Hawaii and Oregon.
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This article was originally published by ABC News.
