How to Get Income Tax Relief for Los Angeles County Wildfire Victims: Delay Payments & Save Money

 

A follow-up to our recent post on property tax relief for Southern California wildfire victims.

If you live in or own a business in Los Angeles County, you may be eligible for federal income tax relief, including:

  • Extended tax filing deadlines

  • The ability to delay Q4 estimated tax payments

  • Tax deductions for uninsured disaster losses

These benefits, announced by the IRS, can help wildfire victims save money and reduce financial stress as they rebuild.

IRS Tax Relief: Key Deadline Extension Until October 15, 2025

Delay Your Q4 Estimated Tax Payment (Originally Due January 15, 2025)

  • Normally, Q4 estimated tax payments for 2024 are due January 15, 2025

  • With this tax relief, you can delay this payment until October 15, 2025—without penalties or interest

Extended Deadlines for Other Tax Filings & Payments:

  • 2024 individual income tax returns (originally due April 15, 2025)

  • 2024 IRA and HSA contributions (extended to October 15, 2025)

  • All 2024 estimated tax payments, including those due January 15, April 15, June 16, and September 15, 2025

  • Business tax returns for partnerships (March 17, 2025) and corporations (April 15, 2025)

  • Tax-exempt organization returns (normally due May 15, 2025)

  • Quarterly payroll and excise tax returns (due January 31, April 30, and July 31, 2025)

  • Payroll and excise tax deposits due on or after January 7, 2025, and before January 22, 2025, are penalty-free if made by January 22, 2025

No action is required to receive this relief. The IRS will automatically apply it to taxpayers whose IRS address of record is in Los Angeles County.

If you receive a late filing penalty notice, call the IRS to request abatement.

Tax Benefits for Wildfire Victims in
Los Angeles County

1. Deducting Uninsured or Unreimbursed Losses

If your home, business, or property was damaged in the Southern California wildfires, and insurance does not fully cover your losses, you may be able to claim a disaster loss deduction.

  • Option 1: Claim the loss on your 2025 tax return (filed in 2026)

  • Option 2: Elect to claim it on your 2024 tax return (filed in 2025) for a faster refund

  • Deadline: You have until October 15, 2026, to decide which tax year to claim the loss

  • FEMA Disaster Number: 4856-DR (must be included on your tax return)

This deduction can significantly reduce taxable income, easing financial burdens.

2. Exclusion of Qualified Disaster Relief Payments

If you receive government assistance for wildfire-related expenses (such as housing, repairs, or medical costs), these funds are NOT taxable income.

3. Special Rules for Retirement Accounts

If you need to access retirement funds due to wildfire-related hardship, you may qualify for:

  • Penalty-free early withdrawals (no 10% penalty tax on withdrawals)

  • Income spread over three years to reduce tax impact

  • Hardship withdrawals with flexible repayment terms

Need Help?
IRS Assistance for Wildfire Victims

  • Lost tax records? Contact the IRS Disaster Hotline at 866-562-5227 for assistance

  • Outside the disaster zone but affected? Contact the IRS for relief options

  • Tax professionals assisting wildfire victims can use the IRS bulk disaster relief request process

Free Tax Assistance Resources

  • IRS Free File: If your AGI is $84,000 or less, you can use IRS Free File to file your taxes online (available in English & Spanish)

  • Volunteer Income Tax Assistance (VITA) & Tax Counseling for the Elderly (TCE): Call 800-906-9887

  • AARP Tax-Aide: Call 888-227-7669 for tax help for seniors

  • MilTax: Free tax filing services for military members and eligible veterans

For more details on disaster-related tax relief, visit DisasterAssistance.gov.

How to Take Advantage of This Tax Relief

If you were affected by the Los Angeles County wildfires, these IRS tax benefits can help you recover financially:

  • You can delay your Q4 estimated tax payment until October 15, 2025

  • Filing deadlines for 2024 taxes have been extended to give you more time

  • Disaster loss deductions and penalty-free retirement withdrawals are available

These benefits can save you thousands of dollars while allowing you to focus on rebuilding, not tax deadlines.

If you have any questions about these tax benefits or need help navigating your tax situation, our accounting firm, DTLACPA, is here to help.

Contact us today to ensure you take full advantage of every tax break available.

Wildfire recovery is already stressful—don't miss out on the financial relief you're entitled to. Let's make sure you're not leaving money on the table.

Stay safe, and reach out if you need support.

 
Argel Sabillo