Victims of this month’s tornadoes that occurred in elements of Illinois, Tennessee, and Kentucky beginning December 10 have left many in a state of catastrophe. Should you had been impacted by the current storms, tornadoes, and flooding we would like you to know TurboTax is right here for you, and we need to maintain you updated with essential tax reduction data that will enable you to on this time of want.
The Federal Emergency Administration Company (FEMA) declared the current occasions as a catastrophe, and the IRS announced that victims of the tough storms that occurred in elements of Illinois, Tennessee, and Kentucky now have till Might 16, 2022 to file numerous particular person and enterprise tax returns and make sure tax funds.
What are the prolonged tax and fee deadlines in Kentucky, Illinois, and Tennessee?
The tax reduction postpones numerous tax submitting and fee deadlines that occurred beginning on December 10. Because of this, affected people and companies in Kentucky can have till Might 16, 2022, to file returns and pay any taxes that had been initially due throughout this era. These embrace:
- 2021 Particular person and Enterprise Returns: 2021 particular person tax returns and funds which might be due on April 18, in addition to numerous 2021 enterprise returns together with funds usually due on March 15 and April 18 have an prolonged deadline till Might 16, 2022.
- 2021 IRA Contributions: Affected taxpayers can have till Might 16 to make 2021 IRA contributions to make an affect on their 2021 taxes.
- Quarterly Estimated Tax Funds: 2021 and 2022 quarterly estimated tax funds with a deadline of January 18, 2022 and April 18, 2022 have been prolonged till Might 16, 2022.
- Quarterly Payroll and Excise Tax Returns: As well as, the quarterly payroll and excise tax returns usually due on Jan. 31 and Might 2, 2022 are additionally now due on Might 16. Penalties on payroll and excise tax deposits due on or after December 10 and earlier than December 27 shall be abated so long as the deposits are made by December 27, 2021.
As well as, Farmers who select to forgo making estimated tax funds and usually file their returns by March 1 will now have till Might 16, 2022 to file their 2021 return and pay any tax due.
What do I have to do to say the tax extension?
The IRS mechanically offers submitting and penalty reduction to any taxpayer with an IRS deal with of file situated within the catastrophe space. Taxpayers don’t have to contact the IRS to get this reduction. Nevertheless, if an affected taxpayer receives a late submitting or late fee penalty discover from the IRS that has an authentic or prolonged submitting, fee or deposit due date falling throughout the postponement interval, the taxpayer ought to name the quantity on the discover to have the penalty abated.
The present listing of eligible localities is at all times accessible on the disaster relief page on IRS.gov.
Do surrounding areas outdoors of Kentucky qualify for an extension?
The IRS will work with any taxpayer who lives outdoors the catastrophe space however whose information mandatory to satisfy a deadline occurring in the course of the postponement interval are situated within the affected space. Taxpayers qualifying for reduction who dwell outdoors the catastrophe space have to contact the IRS at 866-562-5227. This additionally contains employees, aiding the reduction actions, who’re affiliated with a acknowledged authorities or philanthropic group.
How can I declare a casualty and property loss on my taxes if impacted?
People or companies who suffered uninsured or unreimbursed disaster-related casualty losses can select to say them on both the tax return for the 12 months the loss occurred (on this occasion, the 2021 return filed in 2022), or the loss may be deducted on the tax return for the prior 12 months (2020). People might also deduct private property losses that aren’t coated by insurance coverage or different reimbursements.
You’ll want to write the FEMA declaration quantity – 4630DR − on any return claiming a loss.
The tax reduction is a part of a coordinated federal response to the harm brought on by the tough winter storms and relies on native harm assessments by FEMA. For data on catastrophe restoration, go to disasterassistance.gov.
If you’re not a sufferer, however you’re seeking to assist these in want, this can be a nice alternative to donate or volunteer your time to respectable 501(c)(3) not-for-profit charities who’re offering reduction efforts for winter storm victims.
Verify again with the TurboTax weblog for extra updates on catastrophe reduction.
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TurboTaxKat (23 Posts)
Katharina Reekmans is an Enrolled Agent and a contributor to the TurboTax Weblog crew. Katharina has years of expertise in tax preparation and illustration earlier than the IRS. Her passions encompass monetary literary and tax legislation interpretation. She has a robust dedication to utilizing all sources and information to greatest serve the curiosity of purchasers. Katharina has labored as a senior tax accountant, operations supervisor, and controller. Katharina prides herself on unraveling tax legal guidelines in order that the common individual can perceive them.