As wildfires ravage several areas in L.A., our hearts ache for those affected by this devastation and salute the first responders working tirelessly to combat these fires. In times like these, TurboTax stands by you, offering vital information and updates during this crisis.
Extended Tax Deadline and Payment Relief Announced
On January 10, 2025, the IRS unveiled tax relief measures for individuals and businesses in southern California impacted by the catastrophic wildfires and straight-line winds that erupted on January 7, 2025.
Here are key details on the extended tax relief:
1. Relief Extension
Affected individuals and businesses now have until October 15, 2025, to file various federal individual and business tax returns and make essential tax payments.
2. Area Qualifications
Tax relief applies to areas designated by FEMA, with Los Angeles County currently eligible for tax relief. Additional counties may be included later, with the updated list accessible on the IRS website.
3. Filing and Payment Relief Details
- Postponed deadlines span from Jan. 7, 2025, through Oct. 15, 2025
- The Oct. 15, 2025 deadline extension encompasses several key areas such as:
– Tax Year 2024 Returns: Oct. 15, 2025 deadline for filing individual income tax returns and payments.
– 2024 Contributions: Contributions to IRAs and health savings accounts extended till Oct.15, 2025.
– Quarterly Estimated Tax Deadlines: 2024 quarterly tax payments due on Jan. 15, 2025, and 2025 quarterly tax payments postponed till Oct. 15, 2025.
Furthermore, the IRS will abate penalties for late payroll and excise tax deposits made between Jan. 7, 2025, and Jan. 22, 2025, as long as deposited by Jan. 22, 2025.
If you reside in the disaster area, the IRS will automatically provide filing and penalty relief without requiring outreach. For those based outside the area, contact the IRS at 866-562-5227 for assistance.
Additional Tax Relief and Claiming Casualty Loss Deduction
- Taxpayers in disaster areas can claim uninsured losses on 2024 taxes filed in 2025.
- Exclude qualified disaster relief payments from gross income.
- Seek special disaster distributions from retirement plans or IRAs without incurring additional taxes.
As charitable initiatives sprout to aid those in need, exercise caution to ensure credibility. Verify organizations’ legitimacy and IRS 501(c)(3) status for donation deductions.
Stay informed on potential additional IRS disaster relief measures via TurboTax updates. When ready to file taxes, utilize TurboTax resources and expertise for accurate casualty loss claims. Remember to visit DisasterAssistance.gov for disaster recovery information.
In the midst of chaos, remember that TurboTax stands with you, equipped with tools, information, and expert guidance to navigate these turbulent times effectively. Let’s weather this storm together and emerge stronger on the other side.
