Taxpayers in California have been offered an California Tax Extension of the 2023 tax deadline. Here’s what you need to be aware of concerning the extra time the Internal Revenue Service (IRS) gives.
This year, California was met with an unfortunate tragedy as unparalleled snowfall and widespread flooding wreaked havoc on the state. In response to this natural disaster, the Internal Revenue Service (IRS) granted residents affected by the storms an extension to their 2022 tax filing deadlines in 2023.
Are you concerned about the news but unsure what it means?
Don’t worry. PriorTax free Dedicated Tax Professionals are here to help break down which counties are involved and when key dates should be kept in mind and to give you advice on how to go about filing a claim due to this catastrophic event. And remember – we can be there for you when it’s time!
As of October 16, 2023, The IRS has officially extended federal tax deadlines for Californian taxpayers to November 16. This applies to all (55 Counties) but three counties in California – Lassen, Modoc, and Shasta – which were declared disaster areas by FEMA over the course of several months.
California’s Franchise Tax Board has granted an additional extension on filing and payment of state taxes for tax year 2022 to accommodate those affected by disaster areas. Those living in covered disaster areas have until November 16, 2023, to submit their returns. This allowance follows suit with federal tax deadline changes.
Those located in counties announced by the IRS on January 10, January 24, and March 17 as disaster areas are allowed the benefit of an extended deadline to submit their taxes. Unfortunately, those living and conducting business in Lassen, Modoc, and Shasta counties won’t have this reprieve.
California Tax Extension Deadline 2023
Generally, the timeline for paying your federal taxes remains fixed. But in the event of catastrophic occurrences, you are eligible for an extended payment period. As long as your address is one of those located in a declared disaster area, additional time is granted without having to request it formally.
Apart from requesting a California tax extension, you could be eligible to take advantage of a disaster loss deduction on your taxes should your property have been affected by the stormy weather. Further information on this subject can be found below on this page.
In California, those living in federally declared disaster areas included in one or more of three separate declarations have until November 16, 2023, to file and pay their taxes. This date serves as a deadline for taxpayers living under these conditions.
California Disaster Information
In times of stress, such as when suffering property damage from a major storm, filing for a tax extension can be quite beneficial. This extra time will allow you to focus on more pressing tasks, like filling out insurance reports or making necessary repairs.
Although it can be heartbreaking to suffer a loss due to the storms, there is hope: You can apply for a disaster-related tax deduction for either the 2022 or 2023 tax year as long as the federal government has designated your area as an official disaster zone.
For those who have experienced loss due to a disaster in 2022, it is wise to begin collecting and submitting the necessary documents before the 2023 California tax deadline on November 16. This could necessitate obtaining appraisals, filing insurance claims, and other proceedings for determining the worth of your property. Therefore, beginning this administrative work ahead may prove beneficial as it can take time for all these steps to be completed fully.
What are The New Extended Tax and Payment Deadlines for California Storm Victims?
Due to multiple FEMA declarations concerning severe storms, flash flooding, mudslides and landslides that took place over a certain period, tax filing and payment deadlines have been extended until November 16, 2023. All individuals and businesses in the affected area thus have additional time to submit their taxes originally due during this period.
2022 Individual and Business Returns:
Eligible taxpayers can now take advantage of extended deadlines for filing their 2022 returns and contributing to their IRAs and health savings accounts. Their returns, including business and personal income taxes, were originally due on March and April, but are now required by November 16, 2023. This allows for an eight-month extension of the original deadline.
Quarterly Estimated Tax Payment:
The 4th quarter estimated 2022 and 2023 income year payments have been postponed until November 16, 2023. This means individual taxpayers are exempt from making their fourth quarter payment on January 17, 2023. Instead, they can include this with their income return when filed by November 16.
Quarterly Payroll and Excise Tax Returns:
After assessing the current financial situation, I found that the due date for payroll and excise tax returns, which are usually due on May 1, July 31, and October 31, has been extended until November 16, 2023. Furthermore, no penalties will be imposed on payments made between January 8-23, 2023, as long as these deposits occur on or before the 23rd.
What Do I Need To Do to File on a New Extended Tax Extension Deadline?
Taxpayers in a disaster area do not need to contact the IRS for filing and penalty relief, as this is automatically extended. However, there may be instances where affected individuals receive late payment or filing charges with due dates that fall during a postponement period; in such cases, it would be advantageous to call up the number stated on the notice and seek a reduction of penalty.
If impacted, how can I claim a casualty and property loss on my taxes?
Those who experienced damage from a disaster but have not been previously insured or reimbursed can declare the losses on their tax return either for the year in which it occurred (2023) or even go back to the prior year’s return (2022). Additionally, any personal property losses that is not covered by insurance can be deducted, too.
When you are filing your taxes concerning the California disaster loss, clearly note the Disaster Designation- “California, severe winter storms, flooding, landslides, and mudslides” – at the top of the form. Writing it out in bold is a good way to ensure that all details will be taken into account.