Wednesday, January 22, 2020

Are You Entitled to Natural Disaster Relief?


Sadly, many people suffer loss due to natural disasters each year. And, while this is definitely not something anyone wants to endure, there is an upside. The IRS often offers relief, such as extended tax deadlines, for those who suffered due to a federal disaster.

Are You Eligible?
Knowing whether or not you are entitled to disaster relief can be tricky. If you’re ever unsure, you should always consult with a tax professional. In general, though, you’ll qualify if you have a principle residence or business location in a county that has been designated a federal disaster area.
You can also qualify for relief if you can’t access your home or business records or estate or trust information due to it being located in a disaster area.

Finally, you’ll likely be eligible if you are a relief worker in a disaster area or the spouse of a taxpayer affected in any of these ways and planning to file jointly.

Casualty Losses
While different types of disaster relief are available, one of the most common and helpful is to claim a casualty loss.

If your property was damaged or destroyed due to a natural disaster, you can itemize your deductions and claim a deduction for related costs. Generally, you cannot deduct the first $100 of loss or damages, but you can deduct anything left over to the extent it exceeds 10% of your adjusted gross income.

Tax Return Copies
Sometimes, a natural disaster can cause you to lose or lose access to previous tax returns. Thankfully, the IRS will typically not charge you and will even expedite your request for copies of these documents if you’re in a federal disaster area or have lost access to information that was stored in one of these areas. Just be sure to designate your disaster area in red ink at the top of your appropriate request form.

The IRS may be able to help in other ways as well if you’re a disaster victim. To learn about other options for relief, speak with a tax professional.

No comments:

Post a Comment

I welcome your comments here :)