In the aftermath of Hurricanes Helene (September 25, 2024) and Milton (October 5, 2024) that affected the Southeastern US, the IRS has set up a dedicated hotline at 866.562.5227 for any disaster-related tax questions.
Below is a quick overview of additional support the IRS is granting for those affected by Hurricanes Helene and Milton.
Extra Time to File and Pay Taxes
If the taxpayer is in a FEMA-designated disaster area, the IRS is automatically giving more time to file taxes and make payments. An extension is already granted and preparers do not need to send a request to extend.
Currently, taxpayers in Alabama, Florida, Georgia, North Carolina, South Carolina, and parts of Tennessee and Virginia have until May 1, 2025, to file their 2023 tax returns that were due October 15, 2024. This extension does not apply to the 2023 tax payments, though, and May 1 is also the deadline for filing 2024 returns and paying any taxes owed.
The full list of eligible areas is updated on the IRS Tax Relief in Disaster Situations webpage.
This means, for example, that the May 1, 2025 deadline now applies to:
- Any individual or business that has a 2024 return normally due during March or April 2025.
- Any individual, C corporation, or tax-exempt organization that has a valid extension to file their calendar-year 2023 federal return. Payments on these returns are not eligible for the extra time since they were due last spring before the hurricane occurred.
- 2024 quarterly estimated tax payments normally due on January 15, 2025 and 2025 estimated tax payments normally due April 15, 2025.
- Quarterly payroll and excise tax returns normally due on October 31, 2024, January 31, 2025, and April 30, 2025.
Disaster Relief Payments
Most disaster relief payments, such as amounts received from government agencies to cover necessary personal, family, living, or funeral expenses, as well as home repairs or replacing personal property, are not taxable and thus aren't included in gross income.. See Publication 525 for more details.
Retirement Plan Relief
Taxpayers with a retirement plan or IRA may be able to take a special disaster distribution. These distributions are not subject to the usual 10% early withdrawal penalty, and may be able to spread the income over three years. Taxpayers may qualify for a hardship withdrawal, depending on the specific plan.
Casualty Loss Deductions
If taxpayers have suffered damage or lost property in a federally-declared disaster area, they may be eligible for a casualty loss deduction. This deduction covers damages not covered by insurance or other reimbursements and could result in a larger refund. If the taxpayer has a deduction that exceed their income, they may be eligible for a net operating loss (NOL) which can be carried forward to future tax years. For more details, check Publication 547.
Taxpayers can claim this deduction either on the current 2023 return or 2024 return. If taxpayers want to make this election, the deadline is October 15, 2025.
Additional Information:
IRS: News Release - IRS Provides Hurricane Milton Relief
IRS: News Release - IRS Provides Hurricane Helene Relief
IRS: Tax Relief in Disaster Situations
IRS: Disaster Assistance & Emergency Relief for Individuals & Businesses
How Do I Find a FEMA Disaster Designation Number and/or Date?