A winter full of horrendous storms saw record rain and snowfall across California. The results of which were dire for a considerable number of Californians.
Several massive floods, mud and landslides, and enormous snow accumulation forced scores of residents from their homes, while others were snowed in for extended periods. The subsequent property damage left many homeless, with loads of folks still unable to return home.
The State + Fed Respond
To address one of the worst winters on record, the California State Franchise Tax Board and the IRS have delayed the 2022 income tax year filing deadline. The date has officially been pushed back until October 16, 2023, for the 51 counties directly affected by adverse weather.
This includes Los Angeles, Orange, Riverside, San Bernardino, Ventura, and San Diego counties — All recipients of direct FEMA disaster aid related to this winter’s severe weather fallout.
The filing delay also applies to all income tax-related actions, including contributions to your IRA or Health Savings Account Plans. This gives taxpayers another six months to amass further income tax-lowering deductions. An extended grace period that could significantly lower your 2022 tax bill.
Businesses, including sole proprietors or partnerships, are also getting a break. Estimated or interim taxes or pass-through entity elective taxes can be paid when filing your annual return. And that deadline is now officially October 16th for businesses as well.
Disaster-Related Expenses Can Be Written Off
If you suffered disaster-related damages that were not reimbursed or covered by insurance, they could be deducted from your 2022 or 2023 income tax filing.
You must include the FEMA declaration number when claiming a loss. IRS Publication 547 outlines the requirements. You can also refer to the Disaster Assistance and Emergency Relief for Individuals and Businesses page on the IRS site and the IRS Instructions for Form 4684.
And finally, according to L.A. County Assessor Jeff Prang, if your property incurred more than $10,000 in storm-related damage, you could qualify for a reassessment that lowers your property taxes.
Wondering How The Storm-Related Filing Delay Could Impact Your Taxes?
If you’re expecting a refund, filing your tax return in a timely manner is still your best bet. But for everyone else, it’s at least worth investigating opportunities the delay may provide.
If you have questions about taking advantage of the delay, get in touch for a FREE CONSULTATION!