California Wildfire Settlement State Income Tax Exclusion
Financial Products
About
- Allows qualifying wildfire settlement payments connected to specified California wildfire disasters to be excluded from California gross income for covered tax years, potentially reducing tax or supporting an amended-return refund.
Eligibility — Residency
- Taxpayer must be filing a California return for a covered taxable year.
Eligibility — Other
- Payment must satisfy California's statutory definition of a qualified amount received from a qualifying settlement entity in connection with a covered California wildfire disaster.
- Applicable taxable year must begin on or after 2021-01-01 and before 2030-01-01 under current law.
Benefits
- Varies by the qualifying settlement amount and the taxpayer's California tax position. (Applied on the applicable tax return or amended return.)
- State income-tax exclusion for qualifying wildfire settlement amounts
Documents needed
- Settlement/payment records
- Records establishing that the payment is a qualified amount from a qualifying settlement entity/disaster under California law
- Applicable tax return/amendment
How to apply
- online
- Processing time: Varies by tax return/amendment processing.
Also at this location(2)
