Tax Tips & Calculators

The IRS announces special tax relief for victims of recent hurricanes, floods, earthquakes, tornadoes, droughts and wildfires.

If you are in the covered disaster areas of a recent natural disaster, you may qualify to receive an extension on your tax deadlines. Affected taxpayers include those living in the disaster areas, those outside the disaster areas whose tax records are located in the areas, businesses located in the disaster area and relief workers.

The IRS will automatically grant disaster tax relief to taxpayers in the covered disaster area. In other words, you will no longer need to self-identify by writing on your returns or using the disaster designation within tax software. However, if you live or have a business outside the covered disaster area, you will be required to call the IRS disaster hotline (1-866-562-5227) to receive disaster relief.

A list of declared disasters can be found on the FEMA website. If you live or have a business in an affected area, ask your tax professional what relief is available.

• Casualty loss reminder — Affected taxpayers may claim a disaster-related casualty loss on their current-year returns or on amended returns for the prior year. Property losses not covered by insurance can be deducted, minus a $500 deductible and 10% of your adjusted gross income. For disasters occurring in 2009, the 10% floor does not apply to a net disaster loss (the excess of personal casualty losses attributable to a federally declared disaster over personal casualty gains). In addition, a net disaster loss is added to the standard deduction. You do not have to itemize deductions to claim the loss. As a reminder, amended returns including such deductions should have the appropriate disaster noted in red ink at the top. See IRS Publication 547 for details.
• The IRS will waive fees and expedite requests for copies of previously-filed tax returns (Form 4506).