Effective September 30,2022 Governor Gavin Newsom signed AB1249. The assembly bill declares that payments made by PG&E to victims of the California Wildfires from 2017 to 2020 are not subject to California income tax. If we filed your tax returns prior to September 30th and reported any payments that you received from PG&E as California taxable income, please contact us so that we can discuss amending your tax returns.
As of today, no Federal legislation has been passed by Congress or has been signed by the President that exempts the disbursements from Federal income tax. There are bills that have been introduced but they are still in discussion phases only. All proceeds are still potentially subject to Federal income tax depending on how the payments are awarded. Again, please contact us if you have any questions or concerns.