Important Tax Update for California Residents
Due to the hazardous storms that have hit California in recent weeks, the IRS had previously announced that most California residents will now have until May 15, 2023, to file various individual and business tax returns and to make tax payments. Tax Day, scheduled to be April 18th this year, is therefore pushed back one month.
The Franchise Tax Board (FTB) has now made a similar announcement on identical terms to the IRS so that the relief now applies to both federal and California filing deadlines and payment due dates.
California Counties Affected
Individuals and households that reside or have a business in the following counties qualify for tax relief:
Alameda, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Tulare, Ventura, Yolo and Yuba.
There is no need to prove that you have been adversely affected by the storms – residing in an affected County is all that is required.
In addition, the FTB press release mentions that those who have suffered damages from the storm are now able to claim those losses on their California tax return. This is separate from the filing and payment relief which applies to all residents of the named counties, regardless of whether they have suffered an actual loss or not.
The IRS and FTB tax relief postpones various tax filing and payment deadlines until May 15, 2023. The following can be postponed to the May 15th deadline:
- Q4 Estimated Payments for 2022 – originally due January 17, 2023
- Q1 Estimated Payments for 2023 – originally due April 18, 2023
- Tax Day Balances due for 2022 - originally due April 18, 2023
- Tax Day 2022 Tax Return Filing Requirement - originally due April 18, 2023
- Business Returns for 2022 – originally due March 15 and April 18, 2023
- Eligible taxpayers will also have until May 15th to make 2022 contributions to their IRAs and Health Savings Accounts.
So, a little bit of shelter from the storm courtesy of the IRS and the FTB.
If you have any questions about this tax update, please contact BakerAvenue.
Recent press releases: