Multiple fires recently spread across several areas across L.A. in what were some of the worst fires in history. Our hearts go out to everyone impacted by the devastating fires and to all of the first responders who have been tirelessly fighting the fires. We want you to know TurboTax is here for you with information and updates you need to know in this time of need.
Extended Tax Deadline and Payment Relief Announced
On January 10, 2025 the IRS announced tax relief for individuals and businesses in southern California affected by the wildfires and straight-line winds that began on January 7, 2025.
Impacted individuals and businesses now have until Oct. 15, 2025, to file various federal individual and business tax returns and make tax payments.
The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, individuals and households that reside or have a business in Los Angeles County qualify for tax relief.
The same relief will be available to any other counties that may be added later to the disaster area. The current list of eligible localities is available on the Tax relief in disaster situations page on IRS.gov.
Filing and Payment Relief Details
The tax relief postpones various tax filing and payment deadlines that occurred from Jan. 7, 2025, through Oct. 15, 2025. As a result, affected individuals and businesses will have until Oct. 15, 2025, to file returns and pay any taxes that were originally due during this period.
This means that the Oct. 15, 2025, deadline now extends:
- Tax Year 2024 Tax and Payment Deadlines: Tax year 2024 individual income tax returns and payments are now due Oct. 15, 2025.
- 2024 IRA and Health Savings Accounts Deadlines: 2024 contributions to IRAs and health savings accounts, that may save money on their 2024 taxes can now be made up until Oct.15, 2025
- The Final 2024 Quarterly Estimated Tax Deadline and 2025 Quarterly Estimated Tax Deadlines: 2024 quarterly estimated income tax payments due on Jan. 15, 2025, and tax year 2025 estimated tax payments due on April 15, June 16 and Sept. 15, 2025 are extended to Oct. 15, 2025.
- Quarterly Payroll and Excise Tax Returns: Quarterly payroll and excise tax returns due on Jan. 31, April 30 and July 31, 2025 are extended to Oct. 15, 2025.
- Calendar-year partnership and S Corporation Returns: Calendar-year partnership and S corporation returns due on March 17, 2025 are extended to Oct. 15, 2025
- Calendar-year Corporation and Fiduciary Returns: Calendar-year corporation and fiduciary returns and payments due on April 15, 2025 are extended to Oct. 15, 2025.
In addition, penalties for failing to make payroll and excise tax deposits due on or after Jan. 7, 2025, and before Jan. 22, 2025, will be abated as long as the deposits are made by Jan. 22, 2025.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Taxpayers do not need to contact the agency to get this relief.
If you receive a late filing or late payment penalty notice from the IRS for the postponement period. You should call the number on the notice to have the penalty removed.
The IRS will also work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
Additional Tax Relief and Claiming the Casualty Loss Deduction
If you or your business is in a federally declared disaster area and you suffered uninsured or unreimbursed disaster-related losses, you can choose to claim them on your 2024 taxes being filed in 2025 instead of waiting to claim them on your 2025 taxes which will be filed in 2026. Be sure to write the FEMA declaration number – 4856-DR − on any return claiming a loss.
Qualified disaster relief payments are generally excluded from gross income. This means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents.
Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.
Charitable efforts are already underway to help so many in need. Many of them are legitimate, but some may not be. Make sure you check organizations and GoFundMe requests to make sure they are legitimate. For charitable organizations, you can check and make sure they are an IRS recognized 501(c)(3) organization. If you choose to donate, remember you may be able to take a charitable deduction for things like mileage, travel, and the donation of cash and non-cash items if you donate to an IRS recognized 501(c)(3) organization.
The IRS may provide additional disaster relief in the future. TurboTax is here for you with information, tools, and our tax experts. When you are ready to file your taxes TurboTax and our experts can help you accurately claim your casualty losses if you were impacted. Check back with the TurboTax blog for more updates.
For information on disaster recovery, visit DisasterAssistance.gov
