Mississippi taxpayers who provided housing in their primary residence for individuals displaced by Hurricane Katrina may be able to claim an additional tax exemption of $500 per person up to a maximum of $2,000 on their 2005 federal tax return. Housing must have been provided for at least 60 consecutive days.
The exemption can be claimed in either 2005 or 2006, but cannot be claimed in both years for the same person. Taxpayers may claim the exemption on Internal Revenue Service (IRS) Form 8914.
“The IRS extends this tax benefit for individuals who so generously provided their assistance and hospitality during the difficult times following Hurricanes Katrina and Rita,” said IRS spokesperson Mark Green.
The IRS is providing special help for those affected by Hurricane Katrina, as well as survivors and personal representatives of the victims. A special toll-free disaster hotline is available for those having trouble filing or paying their taxes or have other tax issues related to the 2005 hurricanes.
Monday through Friday
In English—7 a.m. to 10 p.m. local time
In Spanish—8 a.m. to 9:30 p.m. local time
IRS Publication 4492—Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma—provides a complete explanation of tax relief available and special instructions for claiming losses. This publication, along with other disaster-related information, can be obtained by calling the disaster hotline or visiting www.irs.gov.
The Department of Homeland Security’s Federal Emergency Management Agency (FEMA) urges those affected by the hurricanes to seek tax counseling this year to take advantage of all available tax relief through the IRS’s programs.
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