IRS Aid May Help Hurricane Victims Get Tax Refunds For Damages
Release Date: October 10, 2004
Release Number: 1551-057
» More Information on Florida Hurricane Ivan
ORLANDO, Fla. -- There may be quick tax relief available for taxpayers whose homes were damaged or destroyed during Hurricane Ivan.
The Federal Emergency Management Agency (FEMA) and the State Emergency Response Team (SERT) reminded residents in the declared counties of the storm-riddled Panhandle they should not overlook the opportunity to receive an income tax refund based on casualty losses resulting from the storm.
This could mean an immediate source of needed cash for some of the residents.
Taxpayers may deduct personal property losses that are not covered by insurance or other similar reimbursements. However, federal disaster assistance for those losses is not taxed.
According to the Internal Revenue Service (IRS), the special refund is available to taxpayers who claim a “non-business casualty loss” deduction on their income tax returns. That deduction applies to loss of property because of sudden, unexpected or unusual events such as violent weather.
Taxpayers living in areas covered by a presidential disaster declaration, now including all 67 Florida counties, can choose to claim the deduction in the current year (2004), or the previous year (2003), whichever is more beneficial to them. Details are covered in IRS publication 547. The forms also can be down-loaded from the IRS website at www.irs.gov
Claiming the deduction on taxes already paid for 2003 would normally result in a refund that could help pay for unexpected losses arising from a disaster. This special tax relief includes filing extensions and relaxation of interest and late-filing penalties on taxes for reasonable cause.
SERT is a collaboration of Florida’s state agencies led by the state coordinating officer. SERT’s mission is to ensure that Florida is prepared to respond to emergencies, recover from them, and mitigate their impact. Visit http://www.floridadisaster.org for the latest information on the hurricane relief effort.
On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages the National Flood Insurance Program and the U.S. Fire Administration.
Last Modified: Tuesday, 12-Oct-2004 08:54:30