Hurricane Helene has brought immense challenges, impacting individuals and businesses across various states. The physical, emotional, and financial toll the disaster has left in its wake is substantial. In response, the IRS has introduced tax relief measures to alleviate some of these burdens and aid in the recovery process.
IRS Tax Relief for Affected Areas
On October 1, 2024, the IRS announced tax relief for regions designated as disaster areas by FEMA. This includes entire states such as Alabama, Georgia, North Carolina, and South Carolina, as well as parts of Florida, Tennessee, and Virginia. Affected individuals and businesses should verify their eligibility by checking the complete list of designated areas on the IRS website.
Individual Tax Relief Overview
Residents in impacted areas have been granted until May 1, 2025, to file their 2024 federal tax returns, as well as any remaining 2023 returns that were under an extension. It's important to note that while 2023 tax return filings have been extended, any taxes due for 2023 should have been paid by April 15, 2024, and are not eligible for further delay. Estimated tax payments originally due on January 15 and April 15, 2025, are also extended to the new deadline of May 1, 2025.
Business Tax Relief Overview
The IRS has similarly extended relief to businesses, with corporate tax returns due in March or April 2025 now pushed to May 1, 2025. This extension applies to 2023 returns that were filed with an extension. Additionally, the deadlines for quarterly estimated tax payments have also been moved to May 1, 2025. Extensions for quarterly payroll and excise tax returns, which were originally due on October 31, 2024, January 31, 2025, and April 30, 2025, are similarly extended. The IRS provides penalty relief for late payroll and excise tax deposits, though these guidelines vary by state.
Claiming Uninsured Disaster Losses
Individuals and businesses who suffered from uninsured or unreimbursed disaster-related losses have the opportunity to claim these as deductions. They can report these losses on their 2024 tax return or elect to claim them on their 2023 return. It's advisable for affected parties to consider which year’s tax return provides the most advantageous deduction and consult with a professional if uncertain.
The tax relief available following Hurricane Helene offers crucial financial support to those affected. Taking advantage of the extended deadlines and available relief options can help minimize further financial stress during these trying times.
