07 Nov Sandy victims could face huge tax bill

Sandy victims could be in for an awful tax surprise.

That’s because a federal tax provision that exempts that forgiven debt from being taxed as regular income expired at the end of last year, according to a story on NJ.com, and Congress has not yet reinstated the legislation.

That means families who have had debt forgiven would have to add it to their taxable income for the year, which could mean a hefty tax bill — the last thing families still struggling to rebuild their homes and lives after Sandy need.

“If it’s not reenacted,” one victim said, “we’re going to have $70,000 that we didn’t make added to our taxable income.”

Read the sad tale here, and contact your legislators to ask for action to help these families.