Victims of Hurricane Ida in Louisiana, Mississippi, New Jersey, New York, and Pennsylvania will get more time to file various individual and business tax returns and make federal tax payments, according to the IRS. This tax relief is available to people in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance.
People affected by Hurricane Ida that reside or have a business in any part of Louisiana or Mississippi, including the Mississippi Choctaw Indian Reservation, qualify for tax relief. In New Jersey, it’s available to people affected by the hurricane in Bergen, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Morris, Passaic, Somerset, Union and Warren Counties. In New York, it’s available to impacted people in Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster and Westchester Counties. In Pennsylvania, relief is available to affected people in Bedford, Bucks, Chester, Delaware, Montgomery, Northampton, Philadelphia and York Counties. The IRS also says that people and businesses in Ida-impacted areas that are later designated by FEMA will automatically receive the same filing and payment relief.
The IRS will also work with anyone who lives outside the affected area, but whose tax records are in the Hurricane Ida disaster area. Call the IRS at 866-562-5227 if this applies to you. This also includes workers assisting the disaster relief activities who are affiliated with a recognized government or philanthropic organization.
Which Deadlines Are Extended?
For Louisiana victims, various tax filing and payment deadlines from August 26, 2021, to January 2, 2022, are extended until January 3, 2022. Mississippi residents affected by the hurricane will have until November 1, 2021, to file and pay taxes due from August 28 to October 31, 2021. For residents in impacted New Jersey and New York counties, deadlines from September 1, 2021, to January 2, 2022, are extended until January 3, 2022. Due dates from August 31, 2021, to January 2, 2022, are extended until January 3, 2022, for impacted Pennsylvania residents. For all these people, this includes the October 15, 2021, deadline for filing a 2020 income tax return that was extended (the original due date was May 17, 2021). Note, however, that tax payments related to 2020 returns were due on May 17, 2021, so those payments aren’t extended.
Qualifying Hurricane Ida victims in Louisiana, Mississippi, New Jersey, New York, and Pennsylvania will also get more time to make the quarterly estimated tax payments that are due on September 15, 2021.
The due date for quarterly payroll and excise tax returns normally due on November 1, 2021, are extended for eligible Hurricane Ida victims, too. For Louisiana taxpayers, penalties on payroll and excise tax deposits due from August 26 to September 9 will also be waived as long as the deposits are made by September 10, 2021. The penalties on deposits due from August 26 to September 12 will be waived for Mississippians if the deposits are made by September 13, 2021. For New Jersey and New York residents and businesses, penalties on payroll and excise tax deposits due from September 1 to September 15 will be waived if the deposits are made by September 16, 2021. Pennsylvanians impacted by Hurricane Ida will have penalties on payroll and excise tax deposits due from August 31 to September 14 waived if the deposits are made by September 15, 2021.
Taxpayers don’t need to contact the IRS to get this relief. However, if an affected person receives a late filing or late payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.
Fees for Copies of Previous Tax Returns
The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the hurricane. When requesting copies of a tax return or a tax return transcript, write either “Louisiana – Hurricane Ida,” “Mississippi – Hurricane Ida,” “New Jersey – Hurricane Ida,” “New York – Hurricane Ida,” or “Pennsylvania – Hurricane Ida” in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.
Deduction for Damaged or Lost Property
Hurricane Ida victims may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.
The deduction can be claimed on either a 2020 tax year return or a 2021 return (which is due next year). In either case, you must write the FEMA declaration number on the return claiming the deduction. The number is FEMA 4611-DR if you’re in Louisiana, EM-3569 if you’re in Mississippi, FEMA DR-4614 if you’re in New Jersey, FEMA DR-4615 if you’re in New York, and FEMA DR-4618 if you’re in Pennsylvania. We also recommend writing “Louisiana – Hurricane Ida,” “Mississippi – Hurricane Ida,” “New Jersey – Hurricane Ida,” “New York – Hurricane Ida,” or “Pennsylvania – Hurricane Ida” in bold letters at the top of the form if you’re claiming a disaster loss on your 2020 return. See IRS Publication 547 for details.
If you decide to claim a deduction for 2020 and you have already filed your 2020 return, you can amend your 2020 return by filing Form 1040X. For this purpose, you must file your amended prior-year return no later than six months after the due date for filing your current-year return (without extensions) for the year in which the loss took place. So, for Hurricane Ida losses in 2021, you would need to file an amended 2020 return by October 17, 2022.