California grants tax relief for hurricane, fire, and seawater intrusion victims

For Immediate Release

Sacramento - The California Franchise Tax Board (FTB) today announced special state tax relief for taxpayers and businesses affected by Hurricanes Idalia and Lee, wildfires in Maui and Hawaii, and seawater intrusion in Louisiana.

Taxpayers and businesses in presidentially declared disaster areas are granted an extension to February 15, 2024, to file the 2022 income tax returns for California and make any income tax related payments that would have been due between September 15, 2023, and January 16, 2024.

“This offers needed relief to people who were victims of the recent hurricanes and Hawaii wildfires and have a California filing requirement,” said State Controller and FTB Chair Malia M. Cohen. “For some, this will mean several additional months to file their California tax returns or make their quarterly estimated tax payments to the state.”

With the relief, those who would have had an October 16, 2023, extended tax filing deadline now have until February 15, 2024, to file. However, tax year 2022 return tax payments originally due on April 18, 2023, are not eligible for the extension.

The specific postponement periods for each state vary depending on when the disaster was declared, but the February 15, 2024, extension includes the following:

• Quarterly estimated income tax payments normally due on September 15, 2023, and January 16, 2024.
• Calendar-year partnerships and S corporations whose 2022 extensions run out on September 15, 2023.
• Calendar-year corporations whose 2022 extensions run out on October 16, 2023.
• Calendar-year tax-exempt organizations whose extensions run out on November 15, 2023.

The IRS recently announced that taxpayers affected by hurricanes, fires, and seawater intrusion in Maui/Hawaii, Florida, Georgia, Maine, Massachusetts, South Carolina, and Louisiana qualify for the extension to February 15, 2024, to file certain individual and business tax returns and make certain tax payments.

FTB generally conforms to Internal Revenue Service (IRS) postponement periods for presidentially declared disasters.

Taxpayers who are affected by a presidentially declared disaster may claim a deduction for a disaster loss. Additional information and instructions are available in FTB Publication 1034, 2022 Disaster Loss: How to Claim a State Tax Deduction.

Taxpayers can claim a disaster loss in one of two ways. They may claim the disaster loss for the 2023 tax year when they file their return next spring, or they may claim the loss against 2022 income on this year’s return. An amended return may be filed by those who already have filed this year. The advantage of claiming the disaster loss on a tax year 2022 return is that FTB can issue a refund sooner.

Taxpayers should write the name of the disaster (for example, Hurricane Idalia, Hurricane Lee, Louisiana Seawater, or Maui Fire) in blue or black ink at the top of their tax return to alert FTB. If taxpayers are filing electronically, they should follow the software instructions to enter disaster information. If an affected taxpayer receives a late filing or late payment penalty notice related to the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

Disaster victims also may receive free copies of their state returns to replace those lost or damaged. Taxpayers may complete form FTB 3516 and write the name of the disaster in blue or black ink at the top of the request.

FTB administers two of California’s major tax programs: Personal Income Tax and the Corporation Tax. FTB also administers other non tax programs and delinquent debt collection functions, including delinquent vehicle registration debt collections on behalf of the Department of Motor Vehicles, and court–ordered debt. Annually, FTB’s tax programs collect more than 70 percent of the state’s general fund. For more information on other taxes and fees in California, visit: taxes.ca.gov.