Significant tax relief provisions have been implemented by the Internal Revenue Service (IRS) for Southern California businesses and individuals in response to the wildfires that have devastated Los Angeles County since January 7, 2025.
According to Wells Fargo analysts, insured losses are expected to surpass $30 billion, and many people are still dealing with the fallout from this tragedy. Because they now have enough time to submit their federal tax returns and make required payments without feeling hurried or overburdened, victims may rest easy.
The IRS has confirmed the new deadlines for tax filings and payments
Individuals and businesses who live in the fire-affected areas have until October 15, 2025, to file various federal tax forms and pay taxes. Numerous deadlines for taxes that would normally fall between January 7 and October 15, 2025, are covered by this extension. Among them are:
- Individual income tax returns are normally due by April 15, 2025.
- Contributions to Individual Retirement Accounts and Health Savings Accounts for 2024.
- Quarterly anticipated income tax payments are typically payable on January 15, April 15, June 16, and September 16, 2025.
- Several business tax returns, including those for partnerships, S companies, and tax-exempt organizations.
People will no longer need to call the Internal Revenue Service to get help since the IRS will automatically provide relief to taxpayers with an IRS-registered address in the designated disaster zones. Nonetheless, those who might have moved to the region after submitting their taxes ought to get in touch with the IRS to make sure they get the same aid.
Additionally, the Federal Disaster Relief Act provides aid to victims of wildfires. According to the law, people can write off unpaid losses for property damage brought on by disasters that have been proclaimed by the federal government. Victims can choose to claim their losses on their 2025 return or their return from the prior year, according to these new tax procedures.
This flexibility is essential, particularly for people who are awaiting government aid or insurance settlements. In 2025, the standard deduction will be raised to $15,000 for individuals and $30,000 for married couples filing jointly, allowing taxpayers to benefit from this as well. The new law allows taxpayers to deduct a larger percentage of their casualty losses straight from the standard deduction by eliminating the 10% adjusted gross income threshold, which further simplifies the deduction computation procedure. Particularly benefiting from this shift are wealthy families who are suffering large losses.
How can Americans obtain assistance and tax relief?
The federal government’s broader response to the flames includes this tax relief. It is intended to ease the financial burden on businesses and people during this trying time. If you are a taxpayer who has been impacted by this catastrophe, the Internal Revenue Service (IRS) strongly advises you to keep all of the records about your losses since they might be needed to support your claims later. Free tax preparation help is also available to you through initiatives like AARP Foundation Tax-Aide and Volunteer Income Tax Assistance. The law also states that qualifying disaster relief contributions are not included in gross income; therefore, money received for repairs or reasonable personal expenses is tax-exempt.
Earn Less Than $73,000 IRS-Approved Programs Could Help You Save Big
The combination of longer deadlines and more possibilities for tax relief offers important assistance as California communities recover from devastating catastrophes.
Experts anticipate that affected people will reap substantial gains from the new tax law, even though the Internal Revenue Service (IRS) has not yet confirmed the precise specifics of eligibility.
By being informed about the agency’s latest developments and utilizing the resources at their disposal, victims can more skillfully go through this trying time.
