Tens of thousands of Americans affected by the wildfires raging across southern California no longer need to worry about filing their taxes by April 15.
Individuals who reside or have business in the Federal Emergency Management Agency (FEMA) designated disaster area, which includes all of Los Angeles County, now have until October 15, 2025, to file both federal and state 2024 tax returns, thanks to extensions announced by Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB).
Any tax payment deadlines have also been pushed to October 15. This relief will automatically occur, and taxpayers do not need to contact the IRS or FTB unless under unique circumstances.
“California is taking action to provide relief to state taxpayers affected by these devastating fires,” said California Governor Gavin Newsom in a press release. “The people in Los Angeles County have experienced unimaginable tragedy, and the state will continue to do everything possible to help these communities.”
How to claim uninsured or unreimbursed losses
More than 10,000 structures have burned in the Los Angeles wildfires, but many homeowners lack sufficient insurance to cover their losses.
Individuals or business owners who suffer uninsured or unreimbursed losses can claim them on either their 2024 or 2025 tax returns. Taxpayers have until October 15, 2026, to make the election. The IRS encourages filers to write the FEMA declaration number (4856-DR) on any return claiming a loss.
Ryan Corcoran, partner at RSM’s Washington National Tax office, says the advantage to adding elections to a 2024 filing is that individuals or business owners can receive some IRS casualty loss relief relatively quickly. Waiting until the next tax season means relief won’t be seen until January 2026.
Individual taxpayers who receive any compensation for expenses or losses incurred due to a qualifying federally declared wildfire are also exempt from taxpayer gross income, thanks to the Federal Disaster Tax Relief Act, which was signed into law late last year.
The IRS notes that disaster relief payments from a government agency are not required to be added to one’s gross income, including for:
- Reasonable and necessary personal, family, living, or funeral expenses,
- Repair or rehabilitation of one’s home,
- Repair or replacement of belongings.
Those affected by natural disasters could be eligible for other federal, state, and local tax benefits, so it is advised to contact a disaster relief tax expert.
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The federal tax deadline extension applies to:
- Individual income tax returns and payments normally due on April 15, 2025
- 2024 contributions to IRAs and health savings accounts for eligible taxpayers
- 2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025
- Quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31, 2025
- Calendar-year partnership and S corporation returns normally due on March 17, 2025
- Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025
- Calendar-year tax-exempt organization returns normally due on May 15, 2025
The California state tax deadline extension applies to:
- Individuals whose tax returns and payments are normally due on April 15, 2025
- Quarterly estimated tax payments normally due on January 15, April 15, June 15, and September 15, 2025
- Business entities whose corporate or pass-through entity tax returns are normally due on March 15 and April 15, 2025
- Pass-through entity (PTE) elective tax payments normally due on March 15 and June 15, 2025
- Tax-exempt organization returns normally due on May 15, 2025
