Personal Finance

The IRS offers tax breaks to victims of Hurricane Ian

The IRS offers tax breaks to victims of Hurricane Ian

Hurricane Ian, which began on September 23, traversed the states of Florida, North Carolina and South Carolina, leaving millions without power and in a state of disaster. If you’ve been affected by Hurricane Ian, we want you to know TurboTax is here for you, and we want to keep you updated with important tax relief information that may help you in this time of need.

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FEMA declared recent events a disaster and the IRS announced that victims of Hurricane Ian anywhere in Florida and in South Carolina have until February 15, 2023, to file various tax returns for individuals and businesses and make certain tax payments. Currently, the tax exemption is available to the entire state of Florida, North Carolina, and South Carolina. Taxpayers in certain Ian-affected areas designated by FEMA will automatically receive the same registration and exemption from payment. The current list of eligible sites is available on the IRS.gov disaster relief page.

What are the extended tax and payment deadlines for Hurricane Ian victims?

Florida

The tax exemption is deferring several tax returns and payment deadlines that began as of September 23, 2022. As a result, affected individuals and businesses will have until February 15, 2023 to file and pay any taxes that were originally owed during this period. These include:

  • 2021 Individual and Commercial Returns with Valid Extensions: Individuals with a valid extension to file the 2021 return application that will end on October 17, 2022 will have until February 15, 2023 to file. Corporations with extensions also have through February 15, 2023, including, among other things, calendar corporations whose 2021 extensions expire on October 17, 2022. The IRS noted that because tax payments related to 2021 revenue were due on April 18, 2022, this Payments do not qualify for an extension.
  • Tax year 2022 4th quarterly estimated tax payment: The estimated 4th quarter 2022 tax payment has been extended with the deadline of January 17, 2023 until February 15, 2023
  • Quarterly Payroll and Selective Tax Returns: Payroll and quarterly tax returns normally due on October 31, 2022 and January 31, 2023, have been extended through February 15, 2023. In addition, fines for payroll and selective tax filings due on or after September 23, 2022, And before October 10, 2022, it will be relaxed as long as the deposits have been made by October 10, 2022.
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North Carolina and South Carolina

The tax exemption defers several tax returns and payment deadlines that began on September 25, 2022 in South Carolina and September 28, 2022 in North Carolina. As a result, affected individuals and businesses will have until February 15, 2023 to file returns and pay any taxes that were originally owed during this period. These include:

  • 2021 Individual and Commercial Returns with Valid Extensions: Individuals with a valid extension to file the 2021 return application that will end on October 17, 2022 will have until February 15, 2023 to file. Corporations with extensions also have through February 15, 2023, including, among other things, calendar corporations whose 2021 extensions expire on October 17, 2022. The IRS noted that because tax payments related to 2021 revenue were due on April 18, 2022, this Payments do not qualify for an extension.
  • Tax year 2022 estimated fourth quarter tax payment: The estimated tax payment for the fourth quarter of tax year 2022 with the deadline of January 17, 2023 has been extended to February 15, 2023.
  • Quarterly Payroll and Selective Tax Returns: Quarterly payroll and selective tax returns that are normally due October 31, 2022 and January 31, 2023 have been extended through February 15, 2023. Additionally, in South Carolina, payroll fines are also extended. and excise. Tax deposits due on or after September 25, 2022, and before October 11, 2022, will be eased as long as the filings are made by October 11, 2022. In North Carolina, fines for payroll and indirect tax deposits due on or after September 28, 2022, And before October 13, 2022, it will be relaxed as long as the deposits are made by October 13, 2022.
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What should I do to claim a tax extension?

The IRS automatically provides registration and penalty waiver for any taxpayer with an IRS record address located in a disaster area. Taxpayers do not need to contact the IRS to obtain this exemption. However, if the affected taxpayer receives a notice of a late payment penalty or late payment from the IRS that has an original or extended due date for the filing, reimbursement, or filing that falls within the deferment period, the taxpayer must call the number on the notice to obtain a commuted penalty.

The current list of eligible sites is always available on the IRS.gov disaster relief page.

Are surrounding areas outside Florida, North Carolina, and South Carolina eligible for an extension?

The IRS will work with any taxpayer who lives outside the disaster area but has their records in place to meet the deadline that occurs during the deferment period in the affected area. Taxpayers who qualify for relief and who live outside the disaster area should call the IRS at 566-562-5227. This also includes workers, assisting in relief activities, and affiliated with a recognized government or charitable organization.

How can I claim a tax and property loss on my taxes if I am affected?

Individuals or businesses who have suffered losses from uninsured or unpaid disaster victims can choose to claim it either on the tax return for the year in which the loss occurred (in this case the 2022 tax return filed in 2023) or the loss can be deducted from the tax return for the previous year. . Individuals can also deduct personal property losses that are not covered by insurance or other compensation.

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Be sure to write the following FEMA declaration number on any return claiming a loss:

  • DR-4673-FL for Florida
  • DR-3585-EM-SC FOR SOUTH CAROLINA
  • DR-3586-EM-NC FOR NORTH CAROLINA

The tax credit is part of a coordinated federal response to damage from severe storms and is based on local damage assessments by the Federal Emergency Management Agency (FEMA). For information on disaster recovery, visit kararessistance.gov.

If you’re not a victim, but are looking to help those in need, this is a great opportunity to donate or volunteer your time to legalize 501(c)(3) nonprofit charities that provide relief efforts to storm victims.

Check back through the TurboTax blog for more updates on disaster relief.

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