Community Chat

[Linmo]

The following counties in CA have been declared as disaster areas:

Colusa, El Dorado, Glenn, Humboldt, Los Angeles, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Bernardino, San Diego, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Ventura, Yolo and Yuba

The IRS has delayed deadlines for filing/paying taxes for both businesses and individuals until May 15th.  Eligible taxpayers will also have until May 15 to make 2022 contributions to their IRAs and health savings accounts.   

I haven't read anything yet about changes in the state tax deadlines.

Here's a link to the IRS ariticle:

https://www.irs.gov/newsroom/irs-california-storm-victims-qualify-for-tax-relief-april-18-deadline-o...

[ROMARY]

Well, that's good to know for Calif. residents.......

Actually, I've always thought that April is way too early for everyone, especially for tax preparers, (and also banks, financial companies, and probably other companies/entities, etc. )

Why not extend it for everyone. ?  The middle of May sounds good to me.

[Linmo]

@ROMARY Anyone can file a tax extension and delay filing federal taxes until October.  But they still need to be paid by April15th to avoid a penalty.

[ROMARY]

Thank you.......'Still', I'm only guessing that there is a charge for filing extensions by a tax preparer, and also one and/or the preparer) would have to figure out the  tax amount to be paid before the April date.  ?   

[Linmo]

@ROMARY Anyone can file for an extension for free using the IRS Free File tool. 

Even those who use a tax preparer to fill out and file their taxes should have an estimate by the end of the tax year of what they will owe.   There are lots of online calculators that can help someone estimate their tax or if their income remains about the same every year, they can just base it on their previous year's tax amount.  

[scrapperlisa]

Thanks for posting this. I'm a tax preparer for the biggest tax company, and I hadn't heard about CA. It is easy to file for an extension. You can just mail in a short form with mostly just your name address and SSN. If you think you will owe, you can guesstimate and send some money with it, but even if you don't send any money, filing an extension can get you out of a lot of expensive tax penalties. On April 15 I filed extensions for about 20 of my procrastinating clients for free.

[ROMARY]

Even though it isn't necessary, I'll bet that many people in Ca. are very relieved to hear about this tax extension.

Just the thought of May instead of April is a hint of better news, especially for those who were/are in storm damaged areas. 

Wishing everyone in Calif and everywhere 

well and safe. 

[Linmo]

@scrapperlisa Most of us in CA do not have flood insurance.  If you have any CA clients, check with them if they are in the affected counties for any property damage they may have.  As you know, it is tax deductible for counties declared under federal emergency declarations.