California Provides Tax Relief for Los Angeles Wildfire Victims: What You Need to Know
In the Wake of Devastating Wildfires, Relief is on the Horizon for California Taxpayers
The recent wildfires in Los Angeles County have left a trail of destruction, displacing families, destroying property, and significantly impacting communities. In response, California Governor Gavin Newsom has announced crucial tax relief measures for those affected by these tragic events. Here's everything you need to know about this initiative and how it could benefit you.
State Disaster Tax Relief Measures
The California Franchise Tax Board (FTB) has extended critical support to taxpayers and businesses in Los Angeles County. Taxpayers will now have until October 15, 2025, to file their 2024 California tax returns and make any tax payments that would have been due between January 7, 2025, and October 15, 2025. This extension aligns with federal tax relief measures granted to wildfire victims in the state.
Governor Newsom emphasized the state’s commitment to helping communities recover:
“California is taking action to provide relief to state taxpayers affected by these devastating fires. The people in Los Angeles County have experienced unimaginable tragedy, and the state will continue to do everything possible to help these communities.”
Key Highlights of the Tax Relief Initiative
Extended Deadlines:
- Individuals: Tax returns and payments usually due by April 15, 2025, are now extended to October 15, 2025.
- Quarterly Estimated Payments: Extensions apply to payments due on January 15, April 15, June 15, and September 15, 2025.
- Businesses: Corporate and pass-through entity returns typically due on March 15 and April 15, 2025, are included in the relief.
- Pass-Through Entity Elective Tax Payments: Deadlines on March 15 and June 15, 2025, have been postponed.
- Tax-Exempt Organizations: Returns due on May 15, 2025, are also extended.
- Taxpayers in areas affected by presidentially declared disasters can claim a disaster loss deduction on their 2024 returns, potentially receiving refunds sooner.
State Controller and FTB Chair Malia M. Cohen expressed her commitment to helping affected residents:
“My heart goes out to everyone affected – please know that you are not alone. I am committed to ensuring that Californians have the help they need during this incredibly difficult time through disaster relief resources that are available through FTB.”
Federal and State Collaboration
Earlier this week, President Joe Biden granted a Major Disaster Declaration for California, bolstering state-level efforts to support wildfire victims. This declaration makes additional resources, including federal tax relief, accessible to individuals and businesses.
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How to Access Relief
If you are a taxpayer or business owner in Los Angeles County affected by the wildfires, here are some steps to ensure you benefit from the available relief:
- Document Your Losses: Keep detailed records of any property damage, expenses, or losses incurred due to the wildfires.
- Claim Disaster Losses: Consider filing a disaster loss deduction on your 2024 return for quicker access to refunds.
- Contact the FTB: For more details or assistance, reach out to the California Franchise Tax Board directly.
Looking Ahead: Relief and Recovery
The 2025 tax year may feel distant, but the relief measures provide immediate reassurance to those grappling with the aftermath of the wildfires. By postponing tax deadlines and offering disaster loss deductions, California is helping its residents and businesses focus on recovery and rebuilding without the added stress of imminent tax obligations.
This initiative highlights the importance of community support and resilience during times of crisis. If you or someone you know has been affected by the Los Angeles wildfires, spread the word about these tax relief measures and ensure they take full advantage of the resources available.
For updates on disaster relief and tax policies, stay connected with the California Franchise Tax Board and local news outlets. Together, we can overcome these challenging times and rebuild stronger than ever.
