On Oct. 7, the Franchise Tax Board announced special tax filing relief for Californians affected by recent wildfires.
Because of the governor’s state of emergency declared on Sept. 25 and 28, and his recent executive order, taxpayers in governor-declared disaster areas, including Santa Cruz County, are granted an extension to Dec. 15 to file California tax returns on 2019 income and make any tax payments that would have been due between now and Dec. 15.
“Californians affected by this historic wildfire season need the opportunity to focus on themselves, their families, and their properties,” said State Controller and FTB Chair Betty T. Yee. “I hope this extension provides a small measure of relief under very difficult circumstances.”
Taxpayers who are victims of wildfires may claim a deduction for a disaster loss sustained in an area proclaimed by the governor to be in a state of emergency. Instructions are in FTB Publication 1034, 2019 Disaster Loss: How to Claim a State Tax Deduction.
Taxpayers may claim their disaster loss in one of two ways. They may claim the disaster loss for the 2020 tax year when they file their return next spring, or they may claim the loss against 2019 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 in the prior tax year is that the FTB can issue a refund sooner.
Taxpayers claiming the disaster loss should write the name of the disaster (for example, CZU Lightning Complex Fire) in blue or black ink at the top of their tax returns to alert FTB and to expedite any refund. If taxpayers are filing electronically, they should follow the software instructions to enter disaster information.
Disaster victims can get free copies of their state returns to replace those lost or damaged by completing form FTB 3516 and write the name of the disaster in blue or black ink at the top of the request.