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flag Eaton Fire survivors may owe taxes on utility settlement payouts.

flag Survivors of the 2025 Eaton Fire may face unexpected tax burdens on settlement payouts from utilities, as a federal tax exemption expired. flag Without legislation, these payments could be taxed as income, costing victims up to 37% of their funds. flag A bipartisan House bill to extend the tax relief passed committee, but its path to final approval remains uncertain.

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