tion 165(h)(2)(A) of such Code (reduced 
by the amount in clause (i) of this sub-
paragraph) as exceeds 10 percent of the 
adjusted gross income of the individual, 
(B) section 165(h)(1) of such Code shall 
be applied by substituting ‘‘$500’’ for ‘‘$500 
($100 for taxable years beginning after Decem-
ber 31, 2009)’’, 
(C) the standard deduction determined 
under section 63(c) of such Code shall be in-
creased by the net disaster loss, and 
(D) section 56(b)(1)(E) of such Code shall 
not apply to so much of the standard deduction 
as is attributable to the increase under sub-
paragraph (C) of this paragraph. 
(2) NET DISASTER LOSS.—For purposes of this 
subsection, the term ‘‘net disaster loss’’ means the 
excess of qualified disaster-related personal casualty 
losses over personal casualty gains (as defined in 
section 165(h)(3)(A) of the Internal Revenue Code 
of 1986). 
(3) QUALIFIED DISASTER-RELATED PERSONAL 
CASUALTY
LOSSES.—For purposes of this sub-
section, the term ‘‘qualified disaster-related personal 
casualty losses’’ means losses described in section 
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165(c)(3) of the Internal Revenue Code of 1986 
which arise in a qualified disaster area on or after 
the incident beginning date of the qualified disaster 
to which such area relates, and which are attrib-
utable to such qualified disaster. 
(c) SPECIAL RULE FOR DETERMINING EARNED IN-
COME.— 
(1) IN GENERAL.—In the case of a qualified in-
dividual, if the earned income of the taxpayer for the 
applicable taxable year is less than the earned in-
come of the taxpayer for the preceding taxable year, 
the credits allowed under sections 24(d) and 32 of 
the Internal Revenue Code of 1986 may, at the elec-
tion of the taxpayer, be determined by sub-
stituting— 
(A) such earned income for the preceding 
taxable year, for 
(B) such earned income for the applicable 
taxable year. 
(2) QUALIFIED INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘qualified individual’’ 
means any individual whose principal place of abode 
at any time during the incident period of any quali-
fied disaster was located— 
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(A) in the qualified disaster zone with re-
spect to such qualified disaster, or 
(B) in the qualified disaster area with re-
spect to such qualified disaster (but outside the 
qualified disaster zone with respect to such 
qualified disaster) and such individual was dis-
placed from such principal place of abode by 
reason of such qualified disaster. 
(3) APPLICABLE
TAXABLE
YEAR.—The term 
‘‘applicable taxable year’’ means, with respect to any 
qualified individual, any taxable year which includes 
any day during the incident period of the qualified 
disaster to which the qualified disaster area referred 
to in paragraph (2) relates. 
(4) EARNED
INCOME.—For purposes of this 
subsection, the term ‘‘earned income’’ has the mean-
ing given such term under section 32(c) of the Inter-
nal Revenue Code of 1986. 
(5) SPECIAL RULES.— 
(A) APPLICATION TO JOINT RETURNS.— 
For purposes of paragraph (1), in the case of 
a joint return for an applicable taxable year— 
(i) such paragraph shall apply if ei-
ther spouse is a qualified individual, and 
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(ii) the earned income of the taxpayer 
for the preceding taxable year shall be the 
sum of the earned income of each spouse 
for such preceding taxable year. 
(B) UNIFORM
APPLICATION
OF
ELEC-
TION.—Any election made under paragraph (1) 
shall apply with respect to both sections 24(d) 
and 32 of the Internal Revenue Code of 1986. 
(C) ERRORS TREATED AS MATHEMATICAL 
ERROR.—For purposes of section 6213 of the 
Internal Revenue Code of 1986, an incorrect 
use on a return of earned income pursuant to 
paragraph (1) shall be treated as a mathe-
matical or clerical error. 
(D) NO EFFECT ON DETERMINATION OF 
GROSS INCOME, ETC.—Except as otherwise pro-
vided in this subsection, the Internal Revenue 
Code of 1986 shall be applied without regard to 
any substitution under paragraph (1). 
SEC. 6. TREATMENT OF CERTAIN POSSESSIONS. 
(a) PAYMENTS TO GUAM AND THE COMMONWEALTH 
OF THE NORTHERN MARIANA ISLANDS.—The Secretary 
of the Treasury shall pay to Guam and the Commonwealth 
of the Northern Mariana Islands amounts equal to the loss 
to that possession by reason of the application of the pro-
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visions of this Act. Such amounts shall be determined by 
the Secretary of the Treasury based on information pro-
vided by the government of the respective possession. 
(b) PAYMENTS TO AMERICAN SAMOA.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall pay to American Samoa amounts estimated 
by the Secretary of the Treasury as being equal to 
the aggregate benefits that would have been pro-
vided to residents of American Samoa by reason of 
the provisions of this Act if a mirror code tax system 
had been in effect in American Samoa. The pre-
ceding sentence shall not apply unless American 
Samoa has a plan, which has been approved by the 
Secretary of the Treasury, under which American 
Samoa will promptly distribute such payments to its 
residents. 
(2) MIRROR CODE TAX SYSTEM.—For purposes 
of this subsection, the term ‘‘mirror code tax sys-
tem’’ means, with respect to any possession of the 
United States, the income tax system of such posses-
sion if the income tax liability of the residents of 
such possession under such system is determined by 
reference to the income tax laws of the United 
States as if such possession were the United States. 
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(c) TREATMENT OF PAYMENTS.—For purposes of 
section 1324 of title 31, United States Code, the payments 
under this section shall be treated in the same manner 
as a refund due from a credit provision referred to in sub-
section (b)(2) of such section. 
SEC. 7. AUTOMATIC EXTENSION OF FILING DEADLINE. 
(a) IN GENERAL.—Section 7508A is amended by 
adding at the end the following new subsection: 
‘‘(d) MANDATORY 60-DAY EXTENSION.—In the case 
of— 
‘‘(1) any individual whose principal place of 
abode is in a disaster area (as defined in section 
165(i)(5)(B)), and 
‘‘(2) any taxpayer if the taxpayer’s principal 
place of business (other than the business of per-
forming services of an employee) is located in a dis-
aster area (as so defined), 
the period beginning on the earliest incident date specified 
in the declaration to which such area relates and ending 
on the date which is 60 days after the latest incident date 
so specified shall be disregarded in the same manner as 
a period specified under subsection (a).’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to federally declared disasters de-
clared after December 31, 2018. 
Æ 
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