eaton fire

Wildfire Survivors Face Tax Burden on Settlements as Congress Deliberates

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.