Hurricane Helene caused a lot of damage, leaving many people and businesses struggling to recover. To help with this, the Internal Revenue Service (IRS) has put in place several tax relief measures.
These steps aim to ease the financial burden on people and businesses in disaster-affected areas.
This article explains the key details of these measures, including extended deadlines and special rules for retirement withdrawals, to support those impacted by the storm.
IRS Tax Relief Measures After Hurricane Helene
Following Hurricane Helene, the IRS has provided tax relief to help those in affected areas, including parts of Florida, Tennessee, Virginia, Alabama, Georgia, North Carolina, and South Carolina.
These measures give individuals and businesses extra time to file tax returns and make payments, offering a much-needed financial break as they recover from the storm’s effects.
Extended Deadline for Tax Filings and Payments
People in disaster zones now have until May 1, 2025, to file their federal tax returns and pay any taxes. This includes the 2024 tax year returns, which were originally due in March and April 2025.
The extension also covers people who had valid extensions for their 2023 returns and those who need to make quarterly estimated tax payments. This extra time allows taxpayers to focus on recovery without worrying about tax deadlines.
Why the IRS Extended the Deadlines
The IRS made these decisions based on the disaster declarations from the Federal Emergency Management Agency (FEMA).
This allowed the IRS to offer relief to people and businesses in hard-hit areas, with the assurance that similar measures will be taken in future disasters.
If you live in a disaster area but haven’t updated your address with the IRS, you may still get penalty letters. If this happens, you should contact the IRS to have any fines waived.
Claiming Losses from Hurricane Helene
The IRS has also made it easier for people to claim losses they suffered from the storm. If the losses weren’t covered by insurance or reimbursement, you can claim them on your tax return.
Taxpayers have the option to claim these losses either on their 2023 or 2024 tax returns. The deadline for making this choice has been extended to October 15, 2025. When filing a claim, be sure to include the FEMA notification number for the disaster area.
Special Rules for Retirement Withdrawals
Typically, people who withdraw money from their retirement savings before the age of 59½ face a 10% penalty. However, the IRS has waived this penalty for people affected by Hurricane Helene.
This allows them to access their retirement funds without the usual penalty. Additionally, people who make these withdrawals can spread the income over three years, reducing their immediate tax burden. There are also rules for hardship withdrawals, depending on the type of retirement plan.
Support for People Outside the Disaster Area
Even if you live outside the disaster zone but have important tax records stored there, you can still receive help from the IRS. You can reach out to the IRS disaster aid hotline to request assistance.
Ongoing IRS Relief Efforts
As recovery continues, the IRS remains committed to supporting the affected communities. These relief measures are just one part of a broader federal response, including cooperation with FEMA.
The IRS is prepared to adjust its support to meet the evolving needs of those who are working to rebuild their lives and businesses.
The IRS has taken important steps to provide relief for those affected by Hurricane Helene, offering extended deadlines, tax relief for losses, and penalties waivers for retirement plan withdrawals.
These measures aim to ease the financial challenges caused by the disaster, helping affected individuals and businesses focus on recovery. As the situation continues to develop, the IRS will continue adapting its efforts to support those in need.
1. Who is eligible for the IRS tax relief after Hurricane Helene?
People living in areas declared as disaster zones by FEMA, including parts of Florida, Tennessee, Virginia, Alabama, Georgia, North Carolin, and South Carolina, are eligible for these relief measures.
2. When is the new deadline to file tax returns for those affected by the hurricane?
Taxpayers in disaster areas have until May 1, 2025, to file their 2024 federal tax returns and make payments.
3. Can I claim losses from Hurricane Helene on my taxes?
Yes, if you suffered losses not covered by insurance, you can claim them on either your 2023 or 2024 tax return. The deadline to choose is October 15, 2025.
4. Do I still have to pay penalties for early retirement withdrawals due to the disaster?
No, the IRS has waived the 10% penalty for early withdrawals from retirement plans for those affected by Hurricane Helene.
5. What should I do if I live outside the disaster area but have tax records there?
You can contact the IRS disaster aid hotline to request assistance with your tax records stored in disaster zones.
