Storm Victims May Get Tax Refunds
Release Date: March 31, 2003
Release Number: 1454-15
» More Information on Kentucky Severe Winter Storms
Richmond, KY -- Residents of Kentucky's newly declared disaster counties are eligible to seek income tax refunds from the Internal Revenue Service (IRS) if they suffered property damage in February's winter storms.
The Federal Emergency Management Agency added 14 new counties to the disaster declaration last week, bringing to 29 the number of counties eligible for individual assistance. They are Anderson, Breathitt, Carter, Clark, Clay, Elliot, Estill, Fayette, Floyd, Greenup, Johnson, Knott, Knox, Lawrence, Leslie, Letcher, Lewis, Magoffin, Martin, Mason, Menifee, Morgan, Nicholas, Owsley, Perry, Pike, Powell, Rowan and Woodford.
Taxpayers may claim casualty losses immediately by amending their last tax return, which is one of the quickest sources of much-needed cash. Casualty losses for tax purposes generally are based on the decrease in fair-market value of the property, or cost plus improvements. When the loss occurs in a presidentially declared disaster, as in Kentucky, taxpayers can choose to claim the deduction on federal tax returns for the current tax year (2003) or the previous year (2002), whichever is financially best for the taxpayer.
The Commonwealth of Kentucky also has a provision for casualty loss deductions in its income tax law. The provision is the same as the one for federal income tax purposes, except that in Kentucky adjusted gross income must be used for the income limitation. Visit the Revenue Cabinet website at www.revenue.ky.gov for forms and more information or call 502-564-4581.
Internal Revenue Service (IRS) claims are filed on form 4684. Obtaining a copy of IRS publication 547 will help guide taxpayers through the process. For information, call the Internal Revenue Service toll-free at 1-800-829-1040 or visit the IRS website at www.IRS.gov.
Last Modified: Wednesday, 02-Apr-2003 09:15:28