Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses what tax relief options are available to taxpayers affected by the natural disasters, like the Southern California wildfires and East Coast hurricanes.
Casualty Losses
Casualty losses are financial losses from unexpected events like hurricanes, wildfires, or theft. To qualify for a deduction, the loss must result from a sudden event in a federally declared disaster area. You can deduct the loss if it exceeds $100 per event and if your total losses for the year are more than 10% of your income. You need to itemize deductions on your tax return and keep records like photos and insurance claims to support your deduction.
Disaster Tax Relief
Disaster tax relief is assistance provided by the IRS to help taxpayers affected by natural disasters, such as hurricanes, wildfires, or floods. The relief varies based on your disaster, but can include extended filing deadlines, penalty waivers, and additional deductions. To qualify, taxpayers must live in the impacted area and may need to provide proof of the disaster’s impact. Relief can apply to individual income tax returns, business filings, and even disaster-related casualty losses. To find out if you qualify, visit the IRS’s disaster relief page and check for your area’s inclusion in a federally declared disaster zone. You can also contact the IRS for specific guidance on your situation.
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