After suffering through a week of freezing temperatures, broken pipes and power outages, the White House issued a Federal Emergency Declaration for Texas. But what exactly does this mean? We are going to try to break it down for you in just a few simple points.
Tax Deadline Extended for Texas Residents and Businesses
Various federal tax filing and payment dates for both individuals and businesses were moved to June 15, 2021. These payment and deadline extensions apply to residents and businesses in Texas and Oklahoma. There is no need to contact the IRS to receive this relief. In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.
- S-Corps and Partnerships due on March 15 were moved to June 15
- Individuals and C-Corps due on April 15 were moved to June 15
- IRA contributions are now able to be made through June 15
- Quarterly estimated payments due on April 15 were moved to June 15
- Quarterly payroll and excise tax returns due on April 30 were moved to June 15
- 2020 returns for tax-exempt organizations due on May 17 were moved to June 15
- Texas Franchise returns due on May 17 were moved to June 15
Relief for Damages Incurred
Individuals and businesses in the federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can claim these on their tax return as a write-off. Even if you have insurance, the deductible portion may still be a benefit counted as losses. These damages can be claimed on either the 2020 tax return or 2021 tax return. There is a special way to claim these deductions, so please call us at 281-440-6279 to schedule your tax appointment and get credit for these additional deductions.
There is a $500 hurdle to pass before counting the repairs, but even if you do not normally itemize your deductions, these damages can be added on top of the standard deduction so you will still receive benefit. These deductions for repairs are calculated for damage done, not the replacement cost. This means that if you upgrade your flooring, you can still get credit for the deduction, but not for the entire amount you paid for the upgraded flooring. Be sure to keep all receipts related to your repairs and the work done to restore your home or business.
If you have already filed your 2020 tax return and want us to amend your tax return to claim these repair deductions, give us a call at 281-440-6279 to schedule an appointment today.