The Internal Revenue Service (IRS) has announced tax relief for individuals and businesses in parts of Florida affected by Hurricane Milton, which began on October 5, 2024. Taxpayers in these areas now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, and Volusia counties qualify for this tax relief.
Extended Deadlines for Tax Filings
This tax relief builds upon earlier assistance provided for taxpayers affected by Hurricane Debby and Hurricane Helene. Taxpayers in all of Florida now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments. This includes:
- 2024 individual and business returns due in March and April 2025.
- 2023 individual and corporate returns with valid extensions.
- Quarterly estimated tax payments normally due on January 15, 2025, and April 15, 2025.
- Quarterly payroll and excise tax returns normally due on October 31, 2024, January 31, 2025, and April 30, 2025.
The IRS allows for a postponement of certain tax-filing and tax-payment deadlines for taxpayers residing or doing business in the disaster area. Any deadlines falling on or after October 5, 2024, and before May 1, 2025, are granted additional time to file through May 1, 2025.
Payroll and Excise Tax Relief
Additionally, penalties on payroll and excise tax deposits due on or after October 5, 2024, and before October 21, 2024, will be waived if the tax deposits are made by October 21, 2024.
IRS Address of Record
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to receive this relief.
Tax Relief for Those Outside the Disaster Area
Taxpayers who live outside the disaster area but whose records necessary to meet a deadline during the postponement period are located in the affected area will also receive assistance from the IRS. They should contact the IRS at 866-562-5227 for support. This includes workers assisting with relief activities affiliated with recognized government or philanthropic organizations.
Additional Tax Relief
Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim these losses on either the return for the year the loss occurred (in this instance, the 2024 return normally filed next year) or the return for the prior year (the 2023 return filed this year). Taxpayers have extra time—up to six months after the due date of their federal income tax return for the disaster year (without regard to any extension of time to file)—to make this election. For individual taxpayers, this means the new deadline is October 15, 2025. Be sure to write the FEMA declaration number on any return claiming a loss.
For more information on disaster assistance and emergency relief available for individuals and businesses, visit the IRS Disaster Assistance and Emergency Relief page.
Qualified Disaster Relief Payments
Qualified disaster relief payments are generally excluded from gross income. This means affected taxpayers can exclude amounts received from a government agency for reasonable and necessary personal, family, living, or funeral expenses, as well as for the repair or rehabilitation of their home or the repair or replacement of its contents. For more details, see Publication 525 on taxable and nontaxable income.
Retirement Plan Relief
Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For instance, a taxpayer may qualify for a special disaster distribution that is not subject to the additional 10% early distribution tax and allows income to be spread over three years. Taxpayers may also be eligible to make hardship withdrawals, depending on the specific rules of their plan or IRA.
Future Disaster Relief
The IRS may provide additional disaster relief in the future, depending on ongoing assessments and evaluations of the situation.
Conclusion
This tax relief is part of a coordinated federal response to the damage caused by Hurricane Milton and is based on local damage assessments by FEMA. For further information on disaster recovery, visit disasterassistance.gov.
If you need assistance with how this disaster relief might impact you or your business directly, or if you require help with tax preparation, please contact our office for guidance.
