IRS Announces Tax Relief for Those Affected by Hurricane Helene
Got hit hard by Hurricane Helene? The IRS has your back. If you’re living in Alabama, Georgia, North Carolina, South Carolina, and parts of Florida, Tennessee, or Virginia, there’s some tax relief coming your way. The IRS just announced that anyone living or running a business in these areas will have extra time to file their taxes and make payments—until May 1, 2025.
So, What Does This Mean?
Basically, if your tax returns or payments were due between September 2024 and May 2025, you now have until May 1, 2025, to get those done. This includes:
- Individual and business tax returns for 2024 that would normally be due in March or April.
- Any 2023 individual or corporate returns that were on an extension.
- Quarterly estimated tax payments, like the ones due in January and April of 2025.
In a nutshell, the IRS is giving you a break so you can focus on recovering, not stressing about taxes.
Who Gets the Relief?
If FEMA has declared your area a disaster zone, you’re in. This includes all of Alabama, Georgia, North Carolina, and South Carolina. For Florida, Tennessee, and Virginia, it’s specific counties, but don’t worry—this list could grow as more areas get added. If you want to check if your location is eligible, hop on over to the IRS website’s disaster relief page.
But here’s the thing: What if you’ve recently moved to a disaster area and your IRS address hasn’t been updated yet? You could get hit with a late penalty notice. No need to panic—just call the number on the notice, explain the situation, and the IRS will sort it out for you. Easy, right?
What If You’re Not in the Disaster Area?
Maybe your records, or the people helping you with them, are in the affected areas, even though you’re living elsewhere. Guess what? The IRS will still work with you. All you have to do is call them up at 866-562-5227. This applies to tax preparers, too. So, if your accountant is stuck in a disaster zone but you’re not, you’re still covered.
Extra Relief for Those Who Suffered Losses
Here’s something important for anyone who took a financial hit: If you had losses from the hurricane that weren’t covered by insurance, you can choose to report them either on your 2024 tax return or go back and amend your 2023 return. This could help get you some relief faster. Just make sure to include the FEMA disaster declaration number on your return when you file.
And speaking of relief, if you received disaster assistance payments from the government, the good news is that you don’t have to include that in your taxable income. That means any payments you got to cover personal, family, or living expenses (or to repair your home) aren’t taxed. It’s a small silver lining in a tough situation.
Retirement Plan Relief
Got a retirement plan or IRA? There might be more ways to access funds without facing penalties. For instance, you could be eligible to take a special disaster distribution without getting hit with the extra 10% early withdrawal tax. And, you can spread the income over three years if you need to. It’s always worth checking with your plan provider to see what specific rules apply, but there are usually options for those facing disaster-related financial hardships.
No Need to Call the IRS—They’ve Got You Covered Automatically
The best part of this whole relief situation? You don’t need to do anything special to get it. The IRS will automatically extend your deadlines and waive penalties if your address on record is in a disaster zone. So, sit tight and focus on getting life back to normal.
Looking for Tax Help?
Now, let’s talk about filing options. If you’re eligible for free tax prep services, there are programs available to help you, like VITA (Volunteer Income Tax Assistance) or TCE (Tax Counseling for the Elderly). These sites help folks get their returns done without paying a cent. And if you’re filing online, IRS Free File is another solid option, especially if your income was under $79,000 in 2023. You can file in English or Spanish, and it’s all free.
Prefer to do things the old-fashioned way? Free File Fillable Forms are available too, and they’re basically the electronic version of paper tax forms. No frills, but they get the job done.
If you’re in the military or a veteran, don’t forget about MilTax. It’s free, and you can file both federal and state returns through it with no income limit.
What Should You Do Next?
The takeaway here? The IRS is giving you more time and fewer penalties to worry about while you’re dealing with the aftermath of Hurricane Helene. Why rush if you don’t have to? Take the time you need to focus on getting your life back in order.
Wouldn’t it be great if all deadlines worked this way? Well, for now, at least, you’ve got until May 2025 to handle your taxes. So, take a breather. Just don’t forget to check if you’re eligible for relief, and take advantage of all the free tax prep options out there.