Hurricane Katrina: Legal Issues - Columbus School of Law

employment) and to pay any taxes with an original or extended due date on or after August 29, 2005. If you are in an
“individual assistance area, this relief will be automatic; if you are in an area where damage is more isolated, you
will need to identify yourself as a hurricane victim by writing“Hurricane Katrina” in red ink at the top of any tax
forms or documents. In Mississippi, residents of the following counties are eligible for automatic relief:Adams,
Amite, Attala, Claiborne, Choctaw, Clarke, Copiah, Covington, Franklin, Forrest, George, Greene, Hancock,
Harrison, Hinds, Jackson, Jasper, JeffersonDavis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln,
Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott,
Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, Yazoo. You will not be liable for any
interest, late payment, late filing or failure to deposit penalties that would otherwise apply. This relief applies to
returns, extended returns, estimated tax payments and Employment and excise tax deposits.
Must I include assistance payments in my reported income?
You are not required to report as income any qualified disaster relief payments from government agencies, from
charitable organizations or from your employer for living, medical, transportation, food or other related expenses.
Can I deduct my losses from Katrina on my tax return?
You may deduct casualty losses on your income tax return. A casualty loss is one resulting in damage, destruction, or
theft of property held for personal use, business, or investment purposes. While normally, to be deductible, a casualty
loss must be at least $100 if personal property and exceed 10% of your adjusted gross income, these limits will not
apply to Katrina losses. You determine the amount you may deduct by determining the decrease in the fair market
value of your property because of Katrina; you may not deduct amounts reimbursed by insurance.
Did Katrina affect my Earned Income Credit or Child Credit?
Those with a principal place of residence in a Katrina disaster area may calculate both credits using their 2004 earned
income.
Appendix
The Appendix includes information related to insurance claims. The Appendix will be expanded in the next week to
include information on document replacement
Appendix A - Useful Telephone Numbers and Websites
State Departments of Insurance
Alabama Department of Insurance 1-800-433-3966 www.aldoi.org
334-241-4141
Louisiana Department of Insurance 1-800-259-5300 www.ldi.state.la.us
225-342-5900
Mississippi Department of Insurance www.doi.state.ms.us
In-State 1-800-562-2957