Hurricane Florence victims get a break on taxes
The IRS will grant some tax relief to residents who are reeling from Hurricane Florence.
The storm, which weakened to a tropical depression on Sunday, poured up to 40 inches of rain on North Carolina since Thursday.
Taxpayers affected by the storm will have additional time to file their quarterly estimated income taxes, which would have been due on Sept. 17. They will now have until Jan. 31, 2019 to file and pay the applicable levies for that period.
"If this were a storm over your house in New Jersey, you don't have this provision; where those affected by Florence in North Carolina likely will."
-Craig Richards, CPA and director of tax services at Fiduciary Trust Company International
Further, if you had a valid extension to file your 2017 taxes by Oct. 15, the IRS will grant you additional time to file.
For now the postponement is available to residents in areas that are designated by the Federal Emergency Management Agency as qualifying for individual assistance.
Check here for details on qualifying for relief.
Here are other tax-planning implications for households affected.
Casualty loss deduction
Be aware that the Tax Cuts and Jobs Act, the tax overhaul that went into effect this year, has changed the way you can claim personal casualty and theft losses.
Prior to the change, you were able to claim an itemized deduction for property losses that aren't reimbursed by insurance and that stem from natural disasters, fires and other events. The total of these losses need to exceed 10 percent of your adjusted gross income.
In 2016, the most recent year available, 154,274 tax returns claimed a casualty or theft loss deduction, according to data from the IRS.
