Tax Fairness for Disaster Victims Act

HR 3975, the Tax Fairness for Disaster Victims Act, adjusts tax credits for individuals affected by federally declared disasters. It allows eligible taxpayers whose income dropped due to a disaster (like a hurricane or flood) to use their *previous year's* earned income and social security taxes instead of their current year's reduced income when calculating certain tax credits, such as the Earned Income Tax Credit (EITC). This applies only to those living in the disaster area on the date FEMA defines as the disaster period and requires them to elect this adjustment. The change ensures disaster victims aren't penalized with lower tax credits because their income temporarily fell due to the disaster.