California Wildfire Tax Relief: New Filing & Payment Deadlines

Both the Internal Revenue Service (IRS) and the state of California have granted tax relief for recent wildfire victims in southern California. If you were impacted by the fires in Los Angeles County, this gives you more time to file your 2024 income tax return and make any necessary tax payments. Let’s break down what you need to know before filing this year.

At a glance:

• Federal and California state income tax returns are now due Oct. 15, 2025, instead of April 15.
• Quarterly estimated payments due in 2025 are now also postponed until Oct. 15.
• You can claim casualty losses from the wildfires on your 2024 federal income tax return (even though the fires occurred in 2025).

Federal tax relief: New filing and payment deadlines

Thanks to the Federal Emergency Management Agency (FEMA) disaster declaration, the IRS announced that taxpayers in the wildfire disaster area are eligible for a postponement of federal tax returns and tax payments. The postponement applies to those who live or have a business in Los Angeles County.

Here are the details from the IRS announcement:

• New filing deadline: All tax returns due between Jan. 7 and Oct. 15, 2025, will now be due on Oct. 15, 2025. This includes individual income tax returns with a due date of April 15, 2025.
• Quarterly estimated payments: If you have quarterly estimated income tax payments, those due between January and September 2025 are also postponed to Oct. 15, 2025. This applies to payments due Jan. 15, April 15, June 16, and Sept. 15, 2025.
• Excise and payroll taxes: For businesses, payroll and excise tax returns normally due in January, April, and July are extended until Oct. 15, 2025.
• Business taxes: If you’re filing S corporation returns, corporation returns, or any tax-exempt organization returns, you also have more time to file and make tax payments. Returns originally due between January and May 2025 now have a postponement period extending to Oct. 15, 2025.

Note: The IRS may provide additional relief for the Los Angeles wildfires in the future. If that happens, we will update this page accordingly.

State tax relief from the California Franchise Tax Board (FTB)

Governor Gavin Newsom announced California will be offering similar disaster relief through the FTB for Los Angeles County taxpayers needing to file California tax returns:

• Individual returns: If your individual state income tax return was due April 15, 2025, or any quarterly estimated tax payments due in 2025, you now have until Oct. 15, 2025, to file and pay.
• Business returns: Pass-through entity returns and corporate tax returns that were due between January and April 2025 have been postponed to Oct. 15, 2025.
• Nonprofit organizations: If you’re involved with a tax-exempt organization, the filing deadline for returns normally due on May 15, 2025, has also been extended to Oct. 15, 2025.

In addition, the California Department of Tax and Fee Administration (CDTFA) announced a three-month extension for CDTFA returns and payments due on or before Jan. 31, 2025. The deadline is automatically extended to April 2025 for Los Angeles County taxpayers whose last return was for less than $1 million in tax, including sales and use tax.

Tax relief for disaster losses and FEMA assistance

If you’ve experienced losses due to the California wildfires, you may be eligible for tax deductions under the disaster loss provisions. Here’s how it works:

• Claiming casualty losses: If you’ve lost personal property in the wildfires not covered by insurance or other reimbursements, you can choose to claim the loss as an itemized deduction on your 2024 federal income tax return. Use Form 4684 to report casualty losses.
• FEMA payments: Qualified disaster relief payments (like FEMA disaster assistance grants) are typically not taxable, so they don’t need to be included in your gross income.

Remember to include the FEMA declaration number (4856-DR) on your tax documents, as this will help ensure your claim gets processed correctly. Not to worry — TaxAct® can help you claim casualty losses when you e-file with us. Our easy-to-use tax preparation software will walk you through the process step-by-step.

California wildfire tax relief FAQs

Who is eligible for the filing extension and payment relief?

Eligible taxpayers include the following:

• Los Angeles County taxpayers and businesses affected by the wildfires (those who live or have a business in Los Angeles County).
• Affected taxpayers who do not live in the covered disaster area but whose records were impacted in the covered disaster area.

If your records have been affected by a natural disaster, but you reside outside the designated disaster area and still require additional time to file, you can get in touch with the IRS at 866-562-5227. They will assist you in determining whether you are eligible for the extended tax deadline.

Are there penalties for late filing?

No, the IRS is waiving penalties for “late” filings and payments within the postponement period. Just be sure to file by Oct. 15, 2025, to avoid any penalties.

Are FEMA payments taxable?

No, qualified disaster relief payments are generally not taxable, so you don’t need to include them in your gross income.

How do I claim a disaster loss on my tax return?

You can use Form 4684 to claim a disaster loss that was not covered by insurance or otherwise reimbursed. Special tax rules apply to disaster losses — you can choose to apply the loss in the calendar year it occurred (2025 for the wildfires) or claim it immediately for the previous tax year (your 2024 tax return that you will file this year). Claiming the loss for the prior year usually results in getting your refund much faster.

Resources and information

We know taxes can feel overwhelming in the best of times, much less in the wake of a disaster. Thankfully, there are resources available to get you the assistance you need. Here are some helpful links:

• Los Angeles County Wildfire Information: ca.gov/LAfires
• Disaster Assistance: disasterassistance.gov
• FTB Publication 1034: 2024 Disaster Loss How to Claim a State Tax Deduction
• FEMA recovery tips: FEMA disaster relief information
• IRS website: Disaster assistance and emergency relief for individuals and businesses
• IRS disaster hotline: Call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.

TaxAct is here to help.

We know that taxes are the last thing on your mind if you’re dealing with the aftermath of the California wildfires. But when you’re ready, TaxAct can help you navigate the ins and outs of tax relief. Whether you’re filing your federal tax return, your California state income tax return, or both, we’ll walk you through the process and help you get tax filing over with without the hassle when the time comes.

This article is for informational purposes only and not legal or financial advice.

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