Hurricane Harvey has proven to be one of the country's worst natural disasters. Millions of home and business owners continue to put their lives back together and attempt to regain some sense of normal.
As you work to rebuild your home or business, you may wonder how you can meet important upcoming tax filing deadlines. You can meet your tax filing obligation without adding worry or stress to your recovery efforts by utilizing the Hurricane Harvey tax relief options available to you today.
File for a Tax Extension
The IRS recently announced that it will offer tax filing extensions to home and business owners affected by Hurricane Harvey as well as Hurricane Irma. The extensions are available to residents who live or run businesses in counties that are designated by the Federal Major Disaster Declaration. You can learn what those counties are at IRS.gov.
If you live or operate a business in one of the designated counties in the state, you can request an extension for filing:
- franchise taxes
- mixed beverage sales tax
- mixed beverage gross receipts tax
- sales and use tax
- hotel tax
- international fuel tax
Claim Tax Deductions on Hurricane Losses
To help you recoup some of your monetary losses from the hurricane, the IRS encourages you to claim deductions on your taxes. During your tax filing extension, you should identify what deductions you could claim when you file your return.Some of the deductions that you might be eligible to claim include:
- losses to your home, personal property, or business
- casualty losses
- damages that cannot or will not be covered by your homeowners' or business insurance
- damages not caused by normal wear and tear
You should note that business owners must use different calculations than homeowners to claim these deductions. Depending on the types of deductions you plan to include on your return, you should deduct either $100 or 10 percent off the total sum of losses.
You can determine and request compensation for the correct monetary amount by using IRS Form 4684 or Schedule A. You should also refer to IRS publication 547 if you have questions or concerns about what expenses you might be eligible to deduct from your tax return.
Utilize Professional Tax Services
Even with this information about Hurricane Harvey relief, you still might be confused about what if any deductions you can claim or if you qualify for a tax filing extension. You do not want to risk missing an important filing deadline or the opportunity to recoup some of your monetary losses. When you want to get the most updated and pertinent information about your tax filing situation, you can retain a tax professional to assist you.
The tax professional will evaluate your circumstances and advise you on how to file for an extension if necessary. This individual will also know what forms to file, what proof of losses to submit, and what deadlines to file by so that you avoid fines and penalties. You can have one less obligation to worry about in the aftermath of the hurricane by relying on a tax professional to help you file your personal or business taxes.
Millions of home and business owners continue to rebuild their lives after Hurricane Harvey. You can focus on recouping your losses and regaining a new sense of normal by taking advantage of tax relief options available to the victims of this hurricane today.
