Tax Relief for Hurricane Victims

Posted on by Traci Crabtree

The IRS has announced vital tax relief for hurricane victims, both for individuals and businesses, affected by two major hurricanes in 2024—Hurricane Helene and Hurricane Milton. Both hurricanes caused widespread damage across several states, and taxpayers in those areas are now eligible for extensions on various tax filings and payments. Here’s what you need to know about the available relief.

Tax Relief for Hurricane Victims – Hurricane Helene

Who Qualifies for Relief?

Tax relief is available for individuals and businesses affected by Hurricane Helene, covering several states and localities, including:

  • Entire states of Alabama, Georgia, North Carolina, South Carolina
  • Parts of Florida (41 counties), Tennessee (8 counties), and Virginia (6 counties + 1 city)

Relief Period and Deadlines

  • Relief start dates vary by state, beginning from Sept. 22 – Sept. 26, 2024.
  • Taxpayers in affected areas now have until May 1, 2025, to file their federal tax returns and make payments. This extension applies to:
    • Individual and business tax returns for 2024 (due March and April 2025).
    • Quarterly estimated tax payments due Jan. 15, 2025 and April 15, 2025.
    • Payroll and excise tax returns due Oct. 31, 2024, Jan. 31, 2025, and April 30, 2025.

Additional Relief Taxpayers suffering uninsured or unreimbursed losses from Hurricane Helene can opt to claim their losses on either the 2024 or 2023 tax return. The FEMA disaster declaration number must be included when claiming losses.

Tax Relief for Hurricane Victims – Hurricane Milton

Who Qualifies for Relief?

Tax relief for Hurricane Milton primarily affects parts of Florida, with similar provisions to those for Hurricane Helene. While the focus is mainly on Florida, other areas impacted by Milton are expected to receive similar relief measures.

Relief Period and Deadlines

  • The relief start date for Hurricane Milton is October 5, 2024.
  • The relief period ends on May 1, 2025, mirroring the deadline for Hurricane Helene relief. Taxpayers in affected areas now have until that date to:
    • File federal tax returns, including individual and business filings.
    • Make quarterly estimated tax payments due Jan. 15, 2025 and April 15, 2025.
    • File quarterly payroll and excise tax returns.

Additional Relief Like Helene, victims of Hurricane Milton can also claim their disaster-related losses on either their 2023 or 2024 returns. The IRS provides penalty relief for missed payroll and excise tax deposits.

IRS Filing and Payment Relief – Common Provisions for Both Hurricanes

Qualified Areas:

  • Tax Relief for hurricane victims apply automatically to taxpayers with an IRS address of record in the disaster areas. No special action is required to receive relief.
  • Taxpayers who live outside the disaster area but whose records are located within it may also be eligible for relief. They must contact the IRS directly to request assistance.

Other Relief Options:

  • Qualified disaster relief payments: Amounts received for personal, family, or property-related expenses are generally not taxable.
  • Retirement Plan Relief: Special disaster distributions from retirement accounts may be eligible for relief from the 10% early withdrawal tax. Hardship withdrawals may also be available for those impacted.

Filing From Outside the Disaster Area

If you’ve relocated to a disaster area but your IRS address of record hasn’t been updated, you might still be eligible for relief. If you receive a late payment or filing penalty notice, contact the IRS directly using the number on the notice to request abatement.

Contact MeredithCPAs for Help

Navigating the complex rules for tax relief for hurricane victims during natural disasters can be daunting, especially with back-to-back events like Hurricanes Helene and Milton. Our team at MeredithCPAs is here to help you take advantage of the current IRS relief options, ensure compliance with new filing deadlines, and guide you through claiming any disaster-related losses.

Contact us today to get started and ensure your tax filings are handled smoothly despite the challenges caused by these recent hurricanes.