Hurricane Gustav Tax Relief

Filing Extensions

• The IRS extended the filing deadlines to Jan. 5, 2009 for individual estimated tax payments, corporate extended 1120 tax returns and individual extended 1040 tax returns. Before the disaster declaration in September 2008, taxpayers had to file the individual estimated tax payments and 1120 forms by Sept. 15 and extended 1040 forms by Oct. 15.
  
  

Tax Deductions

• In addition to the filing extensions, the IRS gave taxpayers the option to claim storm-related losses on either their 2007 or 2008 taxes. Taxpayers could deduct their uninsured losses, but they had to first subtract $100 and ten percent of their adjusted gross income from the total loss. Anyone who claimed the loss for 2007 on an original or amended form received a refund early. However, the IRS noted that claiming the loss for 2008 could result in more savings depending on the taxpayer's income tax bracket for the year.
  
  

Expedited Returns

• The IRS also expedited all tax returns from the affected region. The IRS asked those taxpayers to write "Louisiana/Hurricane Gustav" or "Mississippi/Hurricane Gustav" on the form. IRS agents then gave priority to those returns. The IRS also waived most fees and late penalties for those returns.
  
  

State Tax Relief

• Taxpayers in the affected region also received similar tax relief from several state governments. Louisiana, Mississippi and several other states offered tax relief for any state taxes due from people in the region. While state laws vary on financial benefits for disaster areas, all of the states offering relief mirrored the federal deadline extension to Jan. 5.
  
  

Hurricane Gustav

• Hurricane Gustav formed Aug. 25, 2008 and tore through the Caribbean Sea, causing extensive damage in Cuba, Haiti, Jamaica, the Cayman Islands and the Dominican Republic. About 2 million people evacuated from the Gulf Coast region before the storm came ashore Aug. 31, three years and two days after Hurricane Katrina hit. The storm mostly spared New Orleans but hit rural coastal Louisiana hardest. President George W. Bush designated 53 Louisiana parishes and five Mississippi counties as federal disaster areas. A disaster area designation qualifies counties for a number of relief programs, including tax relief.