Disaster tax relief extension looms close

It’s not too late to file your tax return this year – that is, if you live in any areas granted extensions due to the impact of natural disasters last year. 

Nov. 1 is looming close for many, there’s still some time to file them.

Following a FEMA disaster declaration, the IRS allows for impacted residents to defer their tax filing to help alleviate some of the burden caused by the event. 

The November deadline on the horizon, will impact residents of San Juan County, who should be aware of their filing requirements, potential relief options, and how they can save on taxes under these unique circumstances. 

TurboTax CPA and tax expert Lisa Greene-Lewis regularly advises filers on how to meet extended deadline, tax-saving strategies, and disaster relief deductions. 

She explains, “For those affected by a federally declared disaster, the IRS offers various deductions that can be incredibly valuable.” 

Greene-Lewis highlights deductions like the casualty loss deduction, which can be claimed on either the current year’s tax return or the previous year’s by filing an amended return.

This deduction allows those impacted by disasters to recoup some of their financial losses faster than waiting for future returns.

To help residents make the most of the upcoming tax deadline, Greene-Lewis offers the following tips:

ORGANIZE YOUR DOCUMENTS

Gather your W-2s, 1099s, and receipts for deductible expenses, such as mortgage interest and childcare costs. 

Staying organized can make the filing process smoother and help you take advantage of eligible deductions.

CLAIM YOUR DEDUCTIONS

If you experienced property damage, you could claim a casualty loss deduction.

Visit the IRS’s dedicated disaster relief page for more information and consider speaking to a tax expert for personalized guidance.

MAXIMIZE DEPENDENT CREDITS

Tax benefits like the Earned Income Tax Credit and the Child Tax Credit can provide significant relief, even under the new deadline. For example, the Earned Income Tax Credit could be worth up to $7,430 for families with three children, and the Child Tax Credit could provide up to $2,000 per qualifying child.

CONSIDER NON-CHILD DEPENDENTS

Remember that supporting non-child dependents, such as parents or grandparents, could also qualify you for the Other Dependent Credit, worth up to $500.

It is important to check the IRS website to ensure you’re following relevant deadlines for your area. 

Due to the volume of storms, fires and floods that have occurred over the last two years, deadlines are regularly changing. 

Make sure you have the latest information when it comes to filing to avoid fees or penalties.

For more information visit the IRS website.