Don't Mess With Taxes

The 2024 hurricane season has just begun, but some people are still dealing with disasters from last and earlier this year. Some of them now are facing a June 17 tax filing and payment deadline.

Mother Nature has been Mommy Dearest across much of the United States so far this year.

Way too many federal announcements and media reports have included the phrase “A historic severe weather outbreak occurred” in 2024, meaning that millions of Americans have found themselves in major disaster areas. And the current hurricane season has just begun!

Unfortunately, the disastrous start to this year was a continuation of similar foul weather outbreaks at the end of 2023.

All that meteorological mess has led not only to millions still rebuilding, or trying to recover, it’s also shifted many tax deadlines. One of them is coming up on Monday, June 17.

FEMA, followed by IRS, relief: Once the Federal Emergency Management Agency (FEMA) issues a disaster declaration, residents in the designated areas are eligible for a variety of assistance.

Then the Internal Revenue Service typically provides tax relief to individuals and business owners in the affected areas. That includes new filing and payment deadlines.

In eight states, individual taxpayers are facing a major new deadline is this month. Their due date for filing a 2023 tax return and making any associated tax payments is Monday, June 17.

The June 17 deadline applies to taxpayers affected by the disaster declarations shown in the table below.

    
You can check the current list of tax relief for eligible localities at the IRS’ Around the Nation page. Just click on your state’s link for the full list of IRS announcements about disaster relief.

Returns, payments due by June 17 deadline: The taxpayers in the affected areas above now have until June 17 to make file the following returns and make any necessary payments.

• Calendar year 2023 partnership and S corporation returns normally due on March 15.
• 2023 individual income tax returns and payments normally due on April 15.
• Quarterly estimated tax payments normally due on April 15.
• Calendar year 2023 corporate and fiduciary income tax returns and payments normally due on April 15.
• Quarterly payroll and excise tax returns normally due on April 30.
• Calendar year 2023 returns filed by tax-exempt organizations normally due on May 15.

Other returns, payments and time-sensitive tax-related actions also qualify for the extra time. Details are at the IRS’ disaster assistance and emergency relief for individuals and businesses webpage.

Further extensions available: Individual taxpayers who need more time to file beyond the June 17 deadline can request a regular filing extension. This will give these disaster-area taxpayers until Oct. 15 to file their 2023 tax year returns.

However, there are a couple of things to note here.

First, to get a filing extension, you still submit Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to the IRS. But in these cases, the form must be filed on paper, not electronically. E-file options for requesting an extension are not available after April 15.

Also, the IRS also reminds these taxpayers that the extension, as always, is only to file the required tax paperwork. Any tax owed must be paid by June 17.

Claiming a disaster tax deduction: OK, time for the part of the post that’s all too familiar for regular readers of the ol’ blog. Sorry, not sorry. It’s crucial information for folks who have sustained damages from a major disaster.

They might be able to claim uninsured disaster losses as an itemized tax deduction. They also get the option to choose the tax year in which to make the claim.

You can do so for the prior tax year, which would be the 2023 tax year. That’s on the returns that are due in a couple of weeks.

Or you can wait and claim disaster losses for this 2024 tax year, the one in which the disaster actually occurred, when you file that return next year.

Filing a prior-year disaster claim could get you a tax refund now, providing money you can use toward storm recovery efforts. But run the numbers to see which will get you more tax relief. It might be worth waiting to claim the loss on your 2024 Form 1040.

You can find more about potential disaster tax deductions in my post Considerations in making a major disaster tax claim.

You also can find more on taxes and major disasters in the following posts:

• Picking up the pieces after a major disaster (after Tennessee info)
• Document your property for tax, insurance claims before storms hit
• Retirement plan tax rules when using the savings to recover from a disaster
• IRS and other government resources can help you deal with a natural disaster
• Storm Warnings: Preparing for, recovering from, and helping those affected by natural disasters

Today’s reminder for disaster area taxpayers who now face a June 17 filing and payment deadline also means that this mid-summer date earns this weekend's By the Numbers recognition for the first second third time.

More disasters, later deadlines: Finally, if you’re in a disaster area and it wasn’t discussed above, it’s probably because you have an even later deadline.

Taxpayers in disaster-stricken areas of three states face a July 15, 2024, deadline for filing their 2023 returns and paying any tax due. This includes:

• The Wrangell Cooperative Association of Alaska Tribal Nation, which was hit by severe storms, landslides, and mudslides that began on Nov. 20, 2023.
• Cumberland, Hancock, Knox, Lincoln, Sagadahoc, Waldo, Washington, and York Counties in Maine, which sustained damages due to severe storms and flooding that began on Jan. 9, 2024.
• Kent, Newport, Providence, and Washington Counties in Rhode Island after they were hit by severe storms and flooding began on Dec. 17, 2023, and Jan. 9, 2024.

Hawai'i residents in Hawaii and Maui Counties, which were devastated by the wildfires in parts of Hawaii that began on Aug. 8, 2023, have until Aug. 7, 2024, to file and pay 2023 taxes.

Ohio taxpayers in Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland, and Union counties who were in the paths of tornadoes that began on March 14, 2024, have until Sept. 3, 2024, to file and pay.

And the IRS has granted special relief to U.S. taxpayers who live or have a business in Israel, Gaza, or the West Bank, and certain other taxpayers affected by the terrorist attacks in the State of Israel on Oct. 7, 2023. They now have until Oct. 7, 2024, to file and pay.

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