Texas Declared Federal Disaster – What Does This Mean For My Taxes? - Molen & Associates

Stay Ahead of Law Changes & Protect Yourself Against Being Audited: Corporate Transparency Act and Reasonable Compensation

Texas Declared Federal Disaster – What Does This Mean For My Taxes?

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.

Deadlines Extended:

  • 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.

 

Contact Us

2 + 2 =

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

Credits vs Deductions: What is the Difference?

When it comes to filing taxes, understanding the difference between tax credits and tax deductions is crucial. Both can significantly reduce your tax liability, but they work in different ways. This article will delve into the distinctions between tax credits and...

IRS Audits: Understanding the Process, Red Flags, and Preparation

Navigating the complexities of the U.S. tax system can be daunting, and one of the most anxiety-inducing aspects for taxpayers is the possibility of an IRS audit. Understanding the audit process, recognizing potential red flags, and knowing how to prepare can...

Energy Tax Credits: Tax Incentives for Energy-Efficient Home Improvements and Renewable Energy Installations

In an era where environmental sustainability is becoming increasingly critical, energy tax credits offer homeowners a financial incentive to make energy-efficient home improvements and invest in renewable energy installations. These tax credits not only help reduce...

Foreign Income and Taxes: Understanding the Foreign Earned Income Exclusion and Tax Implications for Expatriates

Foreign Income and Taxes: Understanding the Foreign Earned Income Exclusion and Tax Implications for Expatriates Living and working abroad can be an exciting adventure, but it also comes with unique tax challenges. One of the most significant considerations for U.S....

Understanding the Alternative Minimum Tax (AMT): Who It Affects and How It Works

The Alternative Minimum Tax (AMT) is a crucial component of the U.S. tax system, designed to ensure that individuals with higher incomes pay a minimum amount of tax, regardless of their deductions and credits. This article explores the concept of AMT, its implications...

Tax Implications of Inheritance: Understanding Estate Taxes, Inheritance Taxes, and Step-Up in Basis Rules

Inheriting assets can be a complex affair, especially when it comes to understanding the tax implications involved. This article delves into the intricacies of estate taxes, inheritance taxes, and the step-up in basis rules, providing a comprehensive overview for...

Healthcare and Taxes: Navigating Health Savings Accounts (HSAs) and Medical Expense Deductions

Healthcare costs can be a significant financial burden, but tax-advantaged accounts like Health Savings Accounts (HSAs) and deductions for medical expenses can help mitigate these costs. Understanding these benefits can lead to substantial tax savings and financial...

Tax Credits for Families: Navigating the Child Tax Credit and the Child and Dependent Care Credit

Tax credits are essential tools for reducing the tax burden on families, helping to increase disposable income and financial stability. Among these, the Child Tax Credit (CTC) and the Child and Dependent Care Credit (CDCC) are particularly beneficial for parents and...

Retirement Contributions and Taxes: Understanding the Tax Implications of Contributing to IRAs and 401(k)s

When planning for retirement, understanding the tax implications of contributing to retirement accounts such as Individual Retirement Arrangements (IRAs) and 401(k) plans is crucial. These accounts offer valuable tax benefits, which can significantly impact your...

Texas has been declared a Federal Disaster. What does this mean?

With the storm and power outages last week, Texas has been declared a Federal Disaster. What does this mean? When a state is declared a federal disaster area by the President of the United States, it triggers a series of federal assistance measures under the Robert T....

Request an Appointment Today

1 + 11 =

Call us at

Pin It on Pinterest

Share This