IRS Announces Essential Tax Relief for Florida Hurricane Milton Victims

The devastation caused by Hurricane Milton has left many Floridians grappling with loss and uncertainty. Our hearts go out to those affected by this disaster as communities work to recover and rebuild.

In times like these, it’s essential to know that help is available, especially in the form of tax relief aimed at easing the financial burden on individuals and businesses impacted by the hurricane.

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IRS Tax Relief for Individuals and Businesses

In response to Hurricane Milton, the IRS has announced significant tax relief for individuals and businesses across 51 counties in Florida.

This includes counties that previously did not qualify for assistance under Hurricanes Debby and Helene. The tax relief period began on October 5, 2024, and will last until May 1, 2025. During this time, affected taxpayers can file their federal individual and business tax returns and make necessary tax payments without incurring penalties.

The IRS will automatically identify taxpayers located in the covered disaster areas and apply the filing and payment relief. For those who live outside these areas but are still affected, contacting the IRS disaster hotline is essential to request this relief.

Additionally, penalties for failing to make payroll and excise tax deposits due between October 5 and October 21, 2024, will be abated if deposits are made by October 21.

Also Read: How to Report Rental Income on a US Tax Return

Property Tax Rebate for Homeowners

Homeowners impacted by Hurricane Milton may apply for a property tax rebate for their 2024 taxes. If your home has been damaged and its new appraised value is less than before the storm, you may be eligible for a prorated refund. This rebate aims to ease the financial burden on homeowners who have suffered losses due to the hurricane.

To qualify for this rebate, homeowners must apply before March 1, 2025, using the Application for Catastrophic Event Tax Refund form from the Florida Department of Revenue.

To show uninhabitability, applicants will need to provide supporting documentation such as utility bills, insurance information, contractors’ statements, and building permit applications or building inspection certificates of occupancy.

Dyed Diesel Penalty Relief

In addition to other forms of relief, the IRS is granting penalty relief related to dyed diesel fuel due to Hurricane Milton.

This relief applies to those who may have incurred penalties for using dyed diesel fuel in non-qualifying vehicles or equipment during the disaster period.This measure aims to alleviate some of the financial burdens faced by businesses that rely on diesel fuel for operations during emergencies.

Affected taxpayers should review their records and ensure they comply with any necessary reporting requirements to take advantage of this relief.

Important Due Dates

For those impacted by Hurricane Milton, here are some key deadlines to keep in mind:

• May 1, 2025: This is the extended deadline for filing various federal individual and business tax returns that would typically be due during March and April 2025.
• Quarterly Estimated Tax Payments: Payments normally due on January 15, 2025, and April 15, 2025, are also extended to May 1, 2025.
• Payroll and Excise Tax Returns: Quarterly payroll returns that are usually due on October 31, 2024, January 31, 2025, and April 30, 2025, will follow the same extended deadline.

Additionally, homeowners that fail to file their application by the March 1, 2025 deadline waive their eligibility for a property tax refund under Florida law.

Also Read: What is Schedule E and How to Complete It?

Additional Relief Options

Individuals and businesses in disaster areas who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either their 2023 or 2024 return.

Individual taxpayers have until October 15, 2025, to make this election. Be sure to write the FEMA declaration number on any return claiming a loss.

For more information about tax relief in disaster situations, visit the IRS’s Disaster assistance webpage or contact the IRS disaster hotline at (866) 562-5227 if you reside outside of the designated disaster areas.

Final Word

As Florida begins to heal from the impacts of Hurricane Milton, it’s crucial for affected individuals and businesses to take advantage of the available tax relief.

By understanding these provisions and adhering to the new deadlines, you can alleviate some of the financial stress during this challenging time. Remember, you’re not alone—resources are available to help you navigate through recovery. Stay informed, stay safe, and take care of each other as your community rebuilds.