Tax Relief Extended to California Wildfire Victims: What You Need to Know

In a significant move to support southern California residents affected by January's devastating wildfires and straight-line winds, the IRS has announced comprehensive tax relief measures extending into fall 2025. Los Angeles County taxpayers now have until October 15, 2025, to file various federal tax returns and make payments, with automatic relief applying to those with IRS addresses in the disaster area.

The relief covers not only individual income tax returns typically due in April but also extends to 2024 IRA contributions, quarterly business taxes, and several other key filing deadlines. Affected taxpayers have additional options for claiming disaster-related losses, including the choice to report them on either 2024 or 2025 returns, potentially accelerating their tax relief.

"This relief is part of our coordinated federal response to the damage caused by these storms," noted the IRS announcement, emphasizing their commitment to supporting affected communities through this challenging time. The agency continues to monitor the situation, with additional counties potentially qualifying for relief as damage assessments proceed.

Extended Deadlines

The IRS has pushed back numerous tax deadlines to October 15, 2025, giving affected taxpayers much-needed breathing room. This extension applies to Los Angeles County residents and businesses, with the possibility of additional counties being added to the relief area.

What's Covered?

The extension includes several key deadlines:

- 2024 individual income tax returns and payments typically due April 15

- IRA and health savings account contributions for 2024

- Quarterly estimated tax payments for 2025

- Business returns including partnerships, S corporations, and calendar-year corporations

- Payroll and excise tax returns

- Tax-exempt organization returns

Automatic Relief

If you're in the affected area, you don't need to do anything to receive this relief – it's automatic for anyone with an IRS address of record in the disaster area. However, if you've recently moved to the affected area or have records located there but live elsewhere, you'll need to call 866-562-5227 for assistance.

Additional Benefits for Disaster Victims

Claiming Losses

Victims have two options for claiming uninsured or unreimbursed disaster-related losses:

- On their 2025 tax return (filed in 2026)

- On their 2024 return

Important: Include FEMA declaration number 4856-DR when claiming losses on your return.

Relief Payments

Qualified disaster relief payments received from government agencies for personal expenses, home repairs, or replacement of contents are generally not taxable income.

Retirement Account Access

Special provisions are available for retirement account holders:

- Option to take disaster distributions without the usual 10% early withdrawal penalty

- Ability to spread income from these distributions over three years

- Possible eligibility for hardship withdrawals

Free Tax Preparation Help

Several free tax preparation services are available:

Eligible individuals or families can get free help preparing their tax return at Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. To find the closest free tax help site, use the VITA Locator Tool or call 800-906-9887. Note that normally, VITA sites cannot help claim disaster losses.

• To find an AARP Tax-Aide site, use the AARP Site Locator Tool or call 888-227-7669.

• Any individual or family whose adjusted gross income (AGI) was $79,000 or less in 2023 can use IRS Free File’s Guided Tax Software at no cost. There are products in English and Spanish.

• Another Free File option is Free File Fillable Forms. These are electronic federal tax forms, equivalent to a paper 1040 and are designed for taxpayers who are comfortable filling out IRS tax forms. Anyone, regardless of income, can use this option.

• MilTax, a Department of Defense program, offers free return preparation software and electronic filing for federal tax returns and up to three state income tax returns. It’s available for all military members and some veterans, with no income limit.

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*Note: This relief is part of a coordinated federal response to the California wildfires, based on FEMA's local damage assessments. Additional relief measures may be announced as the situation develops.*