Kentucky Storm, Flooding Victims Now Eligible for Tax Relief
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According to the announcement of the IRS, which was published on August 2, 2024, storm victim taxpayers living in parts of Kentucky have time until November 15, 2024, to make their tax payments and file their individual or business tax returns.
The area, in which the tax relief of the IRS will be applicable, is limited to the area designated by the Federal Emergency Management Agency. So far, the designated areas, which are also confirmed by the IRS for tax relief, include the following counties:
- Wolfe
- Pike
- Perry
- Owsley
- Martin
- Magoffin
- Letcher
- Leslie
- Knott
- Johnson
- Floyd
- Clay
- Breathitt
The IRS also announced that the same relief opportunities will be available for taxpayers living in other counties when the Federal Emergency Management Agency adds them to their list. You can always visit the official IRS page to learn more about disaster relief and the counties it is available.
Under normal circumstances, payment and tax filing deadlines were on July 26, 2024. However, with this relief, taxpayers living in the area will have time until November 15, 2024, to pay their taxes or file their returns without any penalties or interests. On the other hand, the due to file your 2023 return was October 17, 2024, which is extended to November too.
It is worth noting that 2023 returns, which were due on April 18, 2024, are not eligible for this relief. This relief also covers quarterly estimated income tax payments, excise tax returns, and quarterly payroll returns, which their due dates were September 15, October 31, and August 1, 2024, respectively.
Moreover, you can enjoy the abate opportunity for payroll and excise tax deposit penalties after July 26 and before August 10, if you make the deposits until August 10, 2023. Taxpayers do not have to do anything to benefit from this opportunity and IRS will process all the requirements actions automatically.
Tax Relief Measures for Kentucky Storm and Flooding Victims
The aftermath of a natural disaster often involves grappling with both immediate and long-term financial challenges. In recognition of the hardships faced by individuals, families, and businesses affected by the 2024 storm and flooding in Kentucky, the government has introduced a series of tax relief measures aimed at providing a measure of financial relief during the recovery process.
Emergency Housing Assistance Deductions
Housing is a critical concern for those displaced by natural disasters. The tax relief measures include provisions that allow eligible individuals to deduct emergency housing expenses from their state income tax. This deduction encompasses costs related to temporary accommodations, repairs, and replacement of essential items. This provision seeks to alleviate the financial strain associated with securing safe and stable housing in the aftermath of the disaster.
Property Damage Assessment Freeze
Property damage is a common consequence of storms and flooding. To provide some financial stability to affected homeowners, the tax relief measures include a freeze on property damage assessments. This means that property tax assessments will remain at pre-disaster levels for the tax year 2024. This measure prevents an additional financial burden from being placed on individuals already grappling with repairs and rebuilding.
