SACRAMENTO, Calif. — There's more time to file taxes thanks to the government's new tax deadline extensions for Californians impacted by the devastating winter storms.
That being said, some people are confused, wondering if they actually qualify. However, the answer is easier than some might think.
“If you live in 51 counties in California that have been affected by disaster, with all the storms that went through, you qualify for an extension for filing this year," said Sanjay Varshney, founder of Golden Stone Wealth Management.
Thanks to recent announcements from Governor Gavin Newsom, the California Franchise Tax Board and the IRS, the deadline to file federal and state income taxes in this year is Oct. 16 for those who qualify.
In addition, people also qualify for the deductions extension.
"There's no special form. There is no special letter, there's nothing else you need to do over and above what you would have not done normally," said Varshney.
Simply enough, people qualify if their county is on the list. Those counties include Sacramento, Yolo, Placer, El Dorado, San Joaquin and Yuba counties. Even if someone didn't have storm damage, people can automatically qualify for the extension of the deadline, according to Varshney.
If people don't live in those counties, they can still qualify if their business, property or tax preparer are in the impacted counties.
"Let's say you were still affected, directly or indirectly by what happened in some other county that does qualify," said Varshney. "Let's say you run a business and because your business overlaps multiple counties, even though you yourself don't live (there) or may not be located in the county that qualifies."
The purpose of the extension is to help alleviate some of the hardship from the storms. Governor Newsom said, in part, "California is working swiftly help recovering Californians get back on their feet."
While there is more time to file, that could also mean more time to wait for your return.
"The state already is expecting a major budget shortfall this year in 2023, so it is likely that the tax revenue that was expected to come in normally is not going to come in based on that schedule. And therefore, the refunds that go out may also take a little bit longer than usual because the money may not be there in a timely fashion. So I do expect delays," said Varshney.
One tax law office with branches all over the state does have some concerns.
“The postponement of time to pay makes us very nervous as we fear clients might get hit with estimated tax payment and late payment penalties that are not expecting it,” the Tax Law Offices of David Warren Klasing said in a statement.
That's why it's so important to make sure your county is on the list and you pay attention to filing deadlines.
Californians aren't the only people getting this tax extension. People in Georgia and Alabama know they can get the same extension because those two states are impacted by recent disasters.
If someone gets a letter from the government saying they're late, even if they're in an impacted county, they can easily get that notice removed.
If anyone ends up getting a letter from the IRS or Franchise Tax Board saying they're late, call the number listed on the letter.
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