Is There Tax Relief for Disaster Victims?

There are multiple tax relief funds available for victims of disasters. In 2016, with the large number of floods, there are various states offering tax credits to those who incurred any physical damages to themselves or their assets as a consequence of these natural disasters.

Which Taxpayers Qualify

If an area qualifies for tax relief due to a disaster, a taxpayer doesn’t necessarily have to be in the federally declared disaster area in order to be considered for relief. The IRS bases their consideration on who was “affected” by the storm by looking at all records associated with the filing and payment deadline postponed during the relief period. People who are affected can be a business entity, sole proprietor, individual or a shareholder in an S corporation.

Search the IRS Website

The IRS posts all of their natural relief tax credits online. If a recent natural disaster occurred in your area and you were near a documented relief area, you may be qualified for a tax credit. Under law, the IRS usually posts all the requirements that need to be met when filing a disaster-related casualty loss on your tax returns.

If you were affected by a natural disaster, keep yourself update with the IRS website until you get your taxes back. Hiring a tax professional could help with providing all the necessary documents and filing of forms to get your taxes expedited back to you.

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