California storm victims, which includes those in Stanislaus and Merced counties, have an extra month to file their state and federal income tax returns and claims a deduction for disaster loss.
Residents in 41 of the state’s 58 counties now have until May 15 to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced this week.
“Whether it’s more time to file your taxes or getting a deduction, this tax relief will support Californians who have been impacted by the ongoing storms battering the state,” said Gov. Gavin Newsom. “California is working swiftly to get people back on their feet and help communities recover.”
The IRS is offering relief to any area designated by the Federal Emergency Management Agency. This means that individuals and households that reside or have a business in Stanislaus, Merced, Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Sutter, Tehama, Tulare, Ventura, Yolo and Yuba counties are eligible for tax relief.
The tax relief postpones various tax filing and payment deadlines that occurred starting on Jan. 8. As a result, affected individuals and businesses will have until May 15 to file returns and pay any taxes that were originally due during this period. This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18.
Taxpayers also have until May 15 to make 2022 contributions to IRAs and health savings accounts.
In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 15. The May 15 deadline also applies to the quarterly estimated tax payments, normally due on Jan. 17 and April 18. Individual taxpayers can skip making the fourth quarter estimated tax payment — normally due Jan. 17 — and instead include it with the 2022 return they file on or before May 15.
The extended deadline also applies to the quarterly payroll and excise tax returns normally due on Jan. 31 and April 30. In addition, penalties on payroll and excise tax deposits that were due on or after Jan. 8 and before Jan. 23 will be abated as long as the tax deposits are made by Jan. 23.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address located in one of the 41 counties. Taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.
The IRS also will work with taxpayers who live outside the disaster area but whose necessary records are located inside the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.
Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed next year), or the return for the prior year (2022, normally filed this tax season). Be sure to write the FEMA declaration number – 3691-EM − on any return claiming a loss.