Confirmed by the IRS – all those affected by the L.A. fire will be able to claim these new benefits by this deadline

By Rachel Greco

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Confirmed by the IRS – all those affected by the L.A. fire will be able to claim these new benefits by this deadline

The IRS has implemented significant tax relief provisions for Southern California businesses and individuals in response to the wildfires that devastated Los Angeles County since January 7, 2025.

According to Wells Fargo analysts, insured losses are expected to exceed $30 billion, and many people are still dealing with the effects of this tragedy. Victims can now submit their federal tax returns and make payments without feeling rushed or overburdened.

The IRS has confirmed the new deadlines for tax filings and payments

Residents and businesses in fire-affected areas have until October 15, 2025 to file federal tax forms and pay taxes. This extension covers numerous tax deadlines that would normally fall between January 7 and October 15, 2025. Among them are:

  • Individual income tax returns are normally due by April 15, 2025.
  • Contributions to Individual Retirement Accounts and Health Savings Accounts for 2024.
  • Quarterly anticipated income tax payments are typically payable on January 15, April 15, June 16, and September 16, 2025.
  • Several business tax returns, including those for partnerships, S companies, and tax-exempt organizations.

People will no longer need to contact the Internal Revenue Service for assistance, as the IRS will automatically provide relief to taxpayers with IRS-registered addresses in designated disaster zones. Those who may have moved to the area after filing their taxes should contact the IRS to ensure they receive the same assistance.

The Federal Disaster Relief Act offers assistance to victims of wildfires. According to the law, people can write off unpaid losses for property damage caused by federally declared disasters. According to the new tax procedures, victims can claim their losses on their 2025 or prior year returns.

This flexibility is crucial for those awaiting government aid or insurance settlements. In 2025, the standard deduction will be increased to $15,000 for individuals and $30,000 for married couples filing jointly, allowing taxpayers to benefit as well.

The new law allows taxpayers to deduct a greater percentage of their casualty losses directly from the standard deduction by eliminating the 10% adjusted gross income threshold, further simplifying the deduction computation procedure. Wealthy families suffering significant losses stand to benefit the most from this shift.

How can Americans obtain assistance and tax relief?

This tax relief is part of the federal government’s overall response to the fires. It is intended to reduce the financial burden on businesses and individuals during this difficult time.

The Internal Revenue Service (IRS) recommends that taxpayers who have been affected by the disaster keep all records related to their losses as they may be required to support future claims.

Confirmed by the IRS – all those affected by the L.A. fire will be able to claim these new benefits by this deadline
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Free tax preparation assistance is available through initiatives such as AARP Foundation Tax-Aide and Volunteer Income Tax Assistance. The law also states that qualifying disaster relief contributions are not considered gross income; thus, money received for repairs or reasonable personal expenses is tax-free.

The combination of extended deadlines and increased tax relief provides critical assistance as California communities recover from devastating disasters.

The new tax law is expected to benefit affected individuals significantly, though eligibility details have yet to be confirmed by the IRS. Victims can navigate this difficult time more effectively if they are kept up to date on the agency’s latest developments and make use of the resources available.

Also See:- Bad news for taxpayers – here’s the Social Security payment increase that will hit your pocketbook hard

Rachel Greco

Rachel Greco covers life in US County, including the communities of Grand Ledge, Delta Township, Charlotte and US Rapids. But her beat extends to local government, local school districts and community events in communities that surround Lansing. Her goal is to tell compelling stories about the area that matter to local readers.

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