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April 24, 2026

Tax bill could hit wildfire survivors who lost their homes

By GABRIELA AOUN ANGUEIRA
Associated Press

Thousands of survivors of the 2025 Eaton Fire in Altadena, California, have elected to accept an upfront settlement from the utility accused of causing it, forgoing future litigation for a faster payment that could help them rebuild or relocate.

But unless a bill moving through Congress becomes law, that money could be taxed as income, taking big bites out of their payments and possibly disqualifying them from other government benefits.


 
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