Tax deadline extended to Oct. 16 in California: Who does it affect?
After a series of intense storms battered the Golden State, the IRS and Californian authorities have extended the tax filing deadline for millions.
Rain has been falling in California at levels not seen in decades, and as a result, disaster declarations have been made in counties across the state this winter. To support residents, state and federal tax authorities have extended the tax filing deadline for most counties, giving residents until 16 October to submit their 2022 tax return.
Initially, the deadline had been extended to 15 May. After storms continued to rock the state, the October date was selected to provide residents more time to file without incurring any penalties.
Who is eligible for the automatic extension?
The vast majority of the state’s residents will see the deadline extended without them needing to take any action.
What taxes are included under the extension?
Typically, businesses must submit their returns on 15 March and 18 April, but those, in addition to returns filed by individuals, won’t be due until October. Additionally, taxpayers with an IRA or a health savings account will have unit 15 May to finalize all 2022 contributions.
For farmers specifically, the IRS noted that this group can “forgo making estimated tax payments” by 1 March and will not be penalized so long as those estimates and their return are received by the tax authority by 16 October.
How to report a disaster-related loss
After a federally declared disaster, the IRS gives taxpayers an opportunity to claim disaster-related casualty losses on their return. The claims can be made either the year the disaster occurred or the prior year if more time is needed to get one’s finances in order.
Making a disaster-related claim can lower a taxpayer’s bill since “personal property losses that are not covered by insurance or other reimbursements” can be deducted from one’s income. If a claim is going to be made, make sure to write “California severe winter storms, flooding, landslides, and mudslides” on your paper return or select it when prompted if you are filing electronically.