IRS Extends Tax Deadline for Hurricane Helene Victims
Tax Relief for Hurricane Helene
In a recent announcement, the Internal Revenue Service (IRS) has extended tax relief measures for individuals and businesses affected by Hurricane Helene, which caused significant damage in parts of the southeastern United States. This relief includes the postponement of various tax deadlines to May 1, 2025, benefiting all residents in Alabama, Georgia, North Carolina and South Carolina, as well as residents in parts of Florida, Tennessee and Virginia.
Hurricane Helene Relief Measures Explained
The IRS’s decision to extend tax deadlines is a critical support mechanism for those grappling with the aftermath of Hurricane Helene. The affected regions can now file federal income tax returns and make payments without incurring penalties or interest. This extension applies to a range of tax-related obligations, including individual income tax returns, business tax filings and estimated tax payments.
Who Is Eligible for Hurricane Helene Tax Relief?
To qualify for this relief, taxpayers must reside in federally declared disaster areas impacted by Hurricane Helene, as designated by the Federal Emergency Management Agency (FEMA). This includes all of Alabama, Georgia, North Carolina and South Carolina, and 41 counties in Florida, eight counties in Tennessee and six counties plus one city in Virginia. Taxpayers should consult the tax relief in disaster situations page on the IRS website to verify if they are in an eligible location.
Filing and Payment Information
The new deadline of May 1, 2025, applies to various tax obligations that would have normally been due during the affected period. Key items affected include:
- Individuals or businesses with 2024 tax returns that would normally be due in March or April 2025.
- Individuals, businesses or tax-exempt organizations with valid extensions to file their 2023 federal return (however, the IRS notes that payments on these returns do not qualify for the extension since they were due last spring).
- Estimated quarterly 2024 tax payments for individuals and businesses.
- Quarterly payroll and excise tax returns that would have been normally due on Oct. 31, 2024, Jan. 31, 2025, and April 30, 2025.
Other Tax Relief Available
The IRS has also provided information on additional relief available to impacted taxpayers.
- Claiming Disaster-Related Losses: Taxpayers in federally declared disaster areas can choose to claim uninsured or unreimbursed disaster-related losses on either their current year (2024) tax return or the prior year (2023) return. They have up to six months after the due date of the disaster year’s federal income tax return to make this election, which means individual taxpayers have until Oct. 15, 2025. It’s important to include the FEMA declaration number on any return claiming a loss. For more details, see Publication 547.
- Exclusion of Qualified Disaster Relief Payments: Generally, amounts received from government agencies for reasonable personal, family, living or funeral expenses, as well as for home repairs or contents replacement, are excluded from gross income. For more information, refer to Publication 525.
- Retirement Plan Relief: Taxpayers with retirement plans or IRAs may qualify for special disaster distributions that avoid the 10 percent early withdrawal tax and allow income to be spread over three years. Hardship withdrawals may also be available, with specific rules varying by plan.
- Future Relief: The IRS may offer additional disaster relief in the future as part of a coordinated federal response to the storm’s damage, based on assessments by FEMA.
For questions or additional information about available tax relief, contact your Windham Brannon advisor today, or reach out to Brent Wilkinson.
