The IRS has granted victims of a recent natural disaster in Puerto Rico more time to file various individual and business tax returns and make tax payments. Specifically, victims of the severe storms, flooding and landslides that began on February 4, 2022, now have until June 15, 2022, to file and pay tax returns and payments due between February 4 and June 14.
The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in Cataño, Dorado, Toa Baja, Vega Alta and Vega Baja qualify for the extensions, but the IRS will offer the same relief to any taxpayers in other Puerto Rico localities designated by FEMA later.
The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization and anyone visiting the impacted area who was killed or injured as a result of the disaster.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Deadlines Extended
The deadlines that are pushed back include the April 18, 2022, due date for filing a 2021 personal income tax return and paying 2021 taxes, and various business returns normally due March 15 and April 18. Storm victims in the designated area will also have until June 15 to make 2021 IRA contributions.
Puerto Rico storm victims will also get more time to make the first quarterly estimated tax payment for the year that's due on April 18, 2022. In addition, farmers who would normally skip estimated payments and file their returns by March 1, 2022, can now wait until June 15 to file their 2021 return and pay any tax due.
The due date for quarterly payroll and excise tax returns normally due on May 2, 2022, are extended to June 15 for Puerto Rico storm victims, too. Penalties on payroll and excise tax deposits due from February 4 to February 21 will also be waived as long as the deposits were made by February 22, 2022.
Taxpayers don't need to contact the IRS to get this relief. However, if an affected person receives a late filing or late payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.
Deduction for Damaged or Lost Property
Victims of the Puerto Rico storms, flooding and landslides may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.
The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any damage or loss in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the recent Puerto Rico storms, flooding and landslides, the number is DR-4649-PR.
If you decide to claim a deduction for 2021 and you have already filed your 2021 tax return, you can amend your 2021 return by filing Form 1040X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for Puerto Rico storms, flooding and landslide losses in 2022, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on an amended 2021 return should also put the Disaster Designation ("Puerto Rico Severe Storm, Flooding, and Landslides") in bold letters at the top of the form. See IRS Publication 547 for details.
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
-
Ask the Editor: Reader Questions, April 25 — 529 plansIn our latest Ask the Editor round-up, Joy Taylor, The Kiplinger Tax Letter Editor, answers questions related to 529 plans.
-
Ten Cheapest Places To Live in FloridaProperty Tax Make your Florida vacation spot daily living — these counties have the lowest property tax bills in the state.
-
Trump’s Tax Cut Risks Your SNAP, Medicaid BenefitsTax Cuts The GOP budget blueprint could slash lifesaving programs for millions of U.S. households.
-
Missed Tax Day? Nearly One Million Taxpayers Still Can File and Claim Valuable Tax RefundsTax Refunds As many as one million taxpayers could be missing out on a significant tax refund.
-
Ask the Editor: Reader Questions, April 18 — Amended ReturnsIn our Ask the Editor: Taxes, April 18, round-up — Joy Taylor, The Kiplinger Tax Letter Editor, answers questions on amended returns, mortgages and deductions.
-
How Many IRS Commissioners Have We Gone Through This Year?IRS Who were the former IRS commissioners, and why did they resign? Find out how IRS turnover can impact your taxes.
-
Which Generation Pays the Most Tax in the US?Tax Burden Polls show that most people feel like taxes are unfair. But which age group bears the brunt of the tax burden in the United States?
-
How the Trump Harvard IRS Tax Threat Could Impact YouTax Law Trump's latest higher education showdown raises fundamental questions that could reach beyond Harvard's nonprofit tax status.
