IRS Relief for Florida Comes as Lawmakers Pass Major Tax Cuts
Florida residents impacted by recent storms have an extended IRS tax deadline, as state lawmakers pass a nearly $1.3 billion Florida tax cut bill.
Following severe storms and flooding in Florida, the IRS extended the tax deadline for affected Florida residents. The IRS announcement that some in Florida have more time to file their 2022 federal tax returns notably comes after Tax Day. The tax deadline extension came just before Florida lawmakers passed a nearly $1.3 billion tax cut bill. It now awaits a signature from the governor.
Republican Rep. Stan McClain, chair of Florida's House Ways and Means Committee, wanted a bill that helped Floridians. “That was the litmus test — does this provide relief to the consumer?” McClain said in a statement.
The IRS tax deadline extension for Florida was prompted by heavy rainfall (i.e., 30 inches within 24 hours) rainfall over parts of South Florida from April 12 to April 14, which caused extreme flooding in Broward County. The storms caused significant water damage and a temporary closure of the Fort Lauderdale-Hollywood International Airport. Flash flooding reportedly caused most of the damage.
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New IRS Tax Deadline for Florida Storm Victims
The IRS has extended the tax deadline from April 18 to Aug. 15 for Florida residents impacted by severe storms. As a result, directly impacted taxpayers have until Aug. 15, 2023, to file their 2022 federal tax returns or make federal tax payments that would normally be due between April 12 and Aug. 15, 2023. Florida taxpayers who missed the April 18 Tax Day deadline still have time to file their tax returns without facing penalties.
The Florida tax deadline extension follows IRS tax deadline extensions for storm-impacted taxpayers in several other states, including California, Georgia, Alabama, Tennessee, Mississippi, Arkansas, New York, Indiana, and Oklahoma. (However, not all these areas have an extension until Aug. 15.)
What areas of Florida qualify for the tax deadline extension?
Any area designated by the Federal Emergency Management Agency (FEMA) as a result of the severe storms from April 12 to April 14 qualifies for the deadline extension. At this time, Broward County is the only county identified by the agency. However, taxpayers can visit the IRS’s Disaster Relief page for up-to-date information on federally declared disaster areas.
What if you live outside of that county?
If you live outside of the disaster area but had records located in the affected areas that impact your ability to file taxes, contact the IRS at 1-866-562-5227.
HSA and IRA contribution deadlines
Most people had until April 18 to contribute to their IRAs and health savings accounts (HSAs) for 2022 but impacted Florida residents now have until Aug. 15 to make contributions and lower their taxable income. Just be sure to check IRA contribution limits and HSA contribution limits so you don’t contribute more than the maximum amount.
Estimated tax payments
The extended deadline means that Florida residents impacted by the severe April storms also have until Aug. 15 to make any estimated tax payments due between April 12 and August 15. Federal estimated tax payments would have been due April 18 and June 15, but impacted residents will not face penalties as long as payments are made before Aug. 15, 2023.
If you can't file by Aug. 15
Affected Floridians who cannot file by the new Aug. 15 deadline can still request a tax extension. However, tax extension requests must be made by filing a paper Form 4868 since e-filing for tax extensions isn't available after the original April 18 deadline. Filing the extension request will give qualified Florida residents until Oct. 16 to file tax returns. Impacted residents must still pay any taxes due by the Aug. 15 deadline.
Other Florida Tax Relief: $1.5 Billion Tax Cut Package
While the IRS tax deadline extension applies to residents directly impacted by the recent flooding, Floridians across the state will have other tax relief. The Florida House and Senate passed a tax cut bill (HB 7063) that will save state residents an estimated $1.3 billion in taxes. The tax cut bill includes sales tax exemptions as well as scheduled sales tax holidays. Baby products will become exempt from sales tax, as will some energy-saving appliances.
Business owners will also reportedly benefit from the tax cut bill. The legislation will reduce the tax burden for some small businesses, many of which struggled to stay afloat after experiencing the impacts of the COVID-19 pandemic and inflation. Estimates are that the legislation could save Florida businesses $39.5 million in rent tax.
Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.
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