Disaster Tax Relief in Disaster Areas

Who qualifies for disaster tax relief?

Individuals, families, and businesses may be eligible for federal assistance if they live, own a business, or work in a federally declared disaster area, incur sufficient property damage or loss, and, depending on the type of assistance, do not have the insurance or other resources to meet their needs.

There are different types of relief for those who live in a federally declared disaster area, but the most helpful is generally the casualty loss deduction. Other tax relief methods include accelerated refunds and postponed deadlines.

If you are unsure if you qualify for disaster tax relief, the IRS has a checklist.

What is Disaster Tax Relief?

Disaster relief from IRS covers more than just when to file your taxes. Yes, there are extensions of time to file based on the severity and continuation of the disaster itself and the extreme hardships caused. However, the president must declare a major disaster for tax benefits to be part of the disaster relief.

The tax benefits can be as simple as: extending the due date for filing individual and business returns, paying taxes, quarterly estimates, even payroll taxes for businesses. The benefits include the ability to claim your disaster loss on your previous year tax return, either an amended return or the original depending on whether you filed already. Taxpayers should include the Disaster Declaration Number from FEMA on the top of their return, however, IRS does look at zip codes when they receive the returns, this process is used to speed up processing and get money in taxpayer’s hands quicker. It is also used to suspend penalties and interest for late filing and/or paying when needed.

There are many moving pieces and benefits for taxpayers who have been in a major disaster such as wildfires, major tornadoes, flooding, hurricanes and flooding. If you have been caught in a disaster, be sure to get help from a tax pro so you can file for any refunds owed you quickly and accurately.

When to claim a deduction for your tax relief

You can claim the casualty loss deduction for the tax year that the loss occurs or for the previous tax year. For instance, losses from a 2024 natural disaster can be claimed on a 2024 or 2023 tax return. The taxpayer can choose the more beneficial year.

For example, there were dozens of major disaster declarations in 2024 – including wildfires, hurricanes, tornadoes and flooding. Impacted taxpayers should include these losses on their 2024 tax returns if they didn't already include them on an amended, or original, 2023 tax return.

One benefit of claiming the deduction on the previous year's return is to get money back sooner rather than later. This money will be distributed in the form of a refund on taxes paid on your prior-year return. That could make a big difference when you're trying to get back on your feet after a natural disaster.

Tax relief for victims of Rhode Island’s severe storms & flooding 

The IRS has provided tax relief for victims of severe weather in Rhode Island by postponing certain tax-related deadlines. These RI taxpayers now have until July 15, 2024, to file several federal individual and business tax returns and make tax payments. 

Currently, individual taxpayers and households that reside, or have a business in Kent, Providence, and Washington counties qualify for some tax relief. 

The tax relief postpones several tax filing and payment deadlines that occurred from January 9 through July 15, 2024 (postponement period).  

Affected RI taxpayers and businesses will have until July 15, 2024, to file returns and pay taxes that were originally due during this time, including the following. 

• Individual tax returns and tax payments normally due by the tax deadline of April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for qualifying taxpayers. 
• Quarterly estimated income tax payments normally due on January 16, April 15, and June 17, 2024. 
• Quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2024. 
• Calendar-year partnership and S-corporation returns normally due on March 15, 2024. 

Tax relief for victims of Maine’s severe storms and flooding 

The IRS has provided tax relief for victims of severe weather conditions in Maine by postponing specific national tax-related deadlines. These Maine taxpayers now have until July 15, 2024, to file several federal individual and business tax returns, and make the necessary tax payments. 

Currently, individual taxpayers and households that reside or have a business in Cumberland, Hancock, Knox, Lincoln, Sagadahoc, Waldo, Washington and York counties, qualify for tax relief. 

The tax relief postpones several tax filing and payment deadlines that occurred from January 9, 2024, through July 15, 2024 (postponement period).  

Now, affected individuals and businesses will have until July 15, 2024, to file tax returns and pay taxes that were originally due during this period, including the following. 

• Individual income tax returns and payments normally due on April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 
• Quarterly estimated income tax payments normally due on January 16, April 15 and June 17, 2024. 

• Quarterly payroll and excise tax returns normally due on January 31 and April 30, 2024. 
• Calendar-year partnership and S-corporation returns normally due on March 15, 2024. 

Tax relief for 2023 Hawaii wildfire victims 

The IRS has extended an earlier postponement (February 15), until August 7, 2024, for individuals and businesses with filing and tax-payment deadlines affected by the August 8, 2023, wildfires in Hawaii.  

The IRS is offering tax relief to Maui and Hawaii counties. Individual taxpayers and households that reside or have a business in these localities qualify for tax relief. The current list of eligible localities is always available on the Tax relief in disaster situations page on IRS.gov. 

This means, for example, that the August 7, 2024, deadline will now apply to the following. 

• Individual income tax returns and payments normally due on April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 
• Quarterly estimated income tax payments normally due on September 15, 2023, and January 16, April 15 and June 17, 2024. 
• Quarterly payroll and excise tax returns normally due on October 31, 2023, and January 31, April 30 and July 31, 2024. 
• Calendar-year partnership and S-corporation returns normally due on March 15, 2024. 

Also, individuals, businesses and tax-exempt organizations who filed a valid extension for their 2022 returns will now have until August 7, 2024, to complete their filing. However, payments on these returns are not eligible for relief because they were originally due before the wildfires occurred. The Disaster assistance and emergency relief for individuals and businesses page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period. 

Tax relief for victims of Alaska’s severe storms, landslides & mudslides

The Internal Revenue Service has granted tax relief for individual taxpayers and businesses in the Wrangell Cooperative Association of Alaska Tribal Nation that have been affected by severe weather beginning on November 20, 2023. Taxpayers now have until July 15, 2024, to file several federal individual and business tax returns, and make tax payments. 

Specific deadlines falling on or after November 20, 2023, and before July 15, 2024, are granted additional time to file, including the following. 

• Individual tax returns and payments normally due on April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 
• Quarterly estimated income tax payments normally due on January 16, April 15 and June 17, 2024. 

• Quarterly payroll and excise tax returns normally due on Jan. 31 and April 30, 2024. 
• Calendar-year partnership and S-corporation returns normally due on March 15, 2024. 

Tax relief for victims impacted by wildfires in Washington

Individual taxpayers and households that reside or have a business in Spokane and Whitman counties qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.  

For example, certain deadlines falling on or after August 18, 2023, and before June 17, 2024, are granted additional time to file, including the following. 

• Individual income tax returns and payments normally due on April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 
• Quarterly estimated income tax payments normally due on September 15, 2023, January 16 and April 15, 2024. 
• Individuals who filed a valid extension for their 2022 taxes now have until June 17, 2024. However, tax payments related to these 2022 returns were still due April 18, 2023, and not included in this automatic extension. 
• Calendar-year partnership and S-corporation returns normally due on March 15, 2024. 
• Quarterly payroll and excise tax returns normally due on October 31, 2023, and January 31 and April 30, 2024. 

Tax relief for taxpayers impacted by storms and flooding in San Diego, California 

San Diego area taxpayers impacted by severe storms and flooding starting January 21, 2024 qualify for tax relief; various deadlines postponed to June 17. This includes individuals and households that reside or have a business in this location qualify for tax relief. 

For example, certain deadlines falling on or after August 18, 2023, and before June 17, 2024, are granted additional time to file. 

This means the June 17, 2024, deadline will now apply to the following. 

• Individual income tax returns and payments normally due on April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 

• Quarterly estimated income tax payments normally due on April 15, 2024. 
• Calendar-year partnership and S-corporation returns normally due on March 15, 2024. 
• Quarterly payroll and excise tax returns normally due on January 31 and April 30, 2024. 

Tax relief for taxpayers impacted by storms and flooding in Michigan 

Michigan taxpayers impacted by severe weather that began August 24, 2023, qualify for tax relief. Various tax deadlines are postponed to June 17, 2024. 

Currently, this includes Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland and Wayne counties. Individual taxpayers and households that reside or have a business in these locations qualify for tax relief. 

This means the June 17, 2024, deadline will now apply to the following. 

• Individual income tax returns and payments normally due on April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 
• Quarterly estimated income tax payments normally due on September 15, 2023, January 16, 2024, and April 15, 2024. 
• Quarterly payroll and excise tax returns normally due on October 31, 2023, January 31, and April 30, 2024. 
• Calendar-year partnership and S-corporations that had a valid tax-year 2022 extension that ran out on September 15, 2023, or have a 2023 return normally due on March 15, 2024. 
• Calendar-year corporations and fiduciaries that had a valid tax-year 2022 extension that ran out on October 16, 2023, or have a 2023 return and payment normally due on April 15, 2024. 
• Calendar-year tax-exempt organizations that had a valid tax-year 2022 extension that ran out on November 15, 2023, or have a 2023 return normally due on May 15, 2024. 

In addition, individuals and businesses that had an extension to file their 2022 taxes will also have until June 17, 2024, to file them. However, 2022 tax payments are not eligible for this relief because they were originally due last spring, before the disaster occurred. 

Tax relief for taxpayers impacted by storms and flooding in West Virginia

West Virginia taxpayers impacted by severe weather beginning August 28, 2023, qualify for tax relief. Several tax deadlines are postponed to June 17, 2024. 

Currently, this includes Boone, Calhoun, Clay, Harrison and Kanawha counties. Individual taxpayers and households that reside or have a business in these locations qualify for tax relief. 

This means the June 17, 2024, deadline will now apply to the following. 

• Individual income tax returns and payments normally due on April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 
• Quarterly estimated income tax payments normally due on September 15, 2023, January 16, 2024, and April 15, 2024. 
• Quarterly payroll and excise tax returns normally due on October 31, 2023, January 31, and April 30, 2024. 
• Calendar-year partnership and S-corporations that had a valid tax-year 2022 extension that ran out on Sept. 15, 2023, or have a 2023 return normally due on March 15, 2024. 
• Calendar-year corporations and fiduciaries that had a valid tax-year 2022 extension that ran out on October 16, 2023, or have a 2023 return and payment normally due on April 15, 2024. 
• Calendar-year tax-exempt organizations that had a valid tax-year 2022 extension that ran out on November 15, 2023, or have a 2023 return normally due on May 15, 2024. 

Also, individuals and businesses that had an extension to file their 2022 returns will also have until June 17, 2024, to file them. However, tax-year 2022 tax payments are not eligible for this relief because they were originally due last spring, before the disaster occurred.

Tax relief for Connecticut taxpayers impacted by storms 

Connecticut taxpayers impacted by severe storms, flooding and a potential dam breach that began Jan. 10, 2024, qualify for tax relief. Various tax deadlines are postponed to June 17, 2024. 

Currently, this includes New London County including the Mohegan Tribal Nation and Mashantucket Pequot Tribal Nation. Individuals and households that reside or have a business in these localities qualify for tax relief. 

This means the June 17, 2024, deadline will now apply to the following. 

• Individual income tax returns and payments normally due on April 15, 2024. 
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers. 
• Quarterly estimated income tax payments normally due on January 16 and April 15, 2024. 
• Quarterly payroll and excise tax returns normally due on January 31 and April 30, 2024. 
• Calendar-year partnership and S-corporations that have a 2023 return normally due on March 15, 2024. 

In addition, individuals and businesses that had an extension to file their 2022 returns will also have until June 17, 2024, to file them. However, tax-year 2022 tax payments are not eligible for this relief because they were originally due last spring, before the disaster occurred.

Reminder about extensions 

According to the IRS, anyone who needs an additional tax-filing extension, beyond June 17, 2024, for their 2023 federal income tax return, should request it electronically by April 15, 2024. Though a disaster-area taxpayer qualifies to request an extension between April 15, 2024, and June 17, 2024, a request filed during this period can only be submitted on paper. Whether requested electronically or on paper, the taxpayer will then have until October 15, 2024, to file. However, payments are still due on June 17, 2024. Visit IRS.gov/extensions for details. 

If you are an affected taxpayer living or working in a federally declared disaster area, it’s important that you understand all of your options and speak with a Tax Pro before you file your taxes. Find an office near you and schedule an appointment today. There might be more financial assistance available to you.

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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