Taxpayers Who Open Their Homes To Katrina Evacuees May Be Eligible For Tax Deduction of $500 per person, up to a maximum of $2,000. To qualify, you must provide rent-free housing in your principal residence for at least 60 days. You can take the deduction for housing displaced members of your family as long as they're not claimed as dependents on your tax returns. Consult your tax advisor - Section 302 HR 3768 (PL 109-73) Katrina Emergency Tax Relief Act - 2005