2025 LA Fires Disaster Tax Relief & Tips
Our hearts go out to those affected by the LA wildfires. If you, a loved one, or someone you know has been affected by the fires in Los Angeles, please see the information below for available tax relief, tax-related benefits, financial tips and helpful resources.
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Filing & Payment Relief / Tax Relief / Tax-Related Benefits / Roth IRA Withdrawals / Financial Tips / Donations / Helpful Resources
Filing & Payment Relief
Individuals and businesses affected by the LA wildfires will have until October 15, 2025 to file tax returns and pay any taxes that were originally due during this period.
The IRS grants automatic filing and penalty relief to taxpayers whose IRS address of record is within the disaster area. Taxpayers are not required to reach out to the agency to receive this assistance. However, we recommend following the normal extension process to prevent unnecessary automated government notices.
For example, the new October 15, 2025 deadline will apply to the following:
- Individual income tax returns and payments normally due on April 15, 2025.
- 2024 contributions to IRAs and health savings accounts for eligible taxpayers.
- 2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.
- Quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31, 2025.
- Calendar-year partnership and S corporation returns normally due on March 17, 2025.
- Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
- Calendar-year tax-exempt organization returns normally due on May 15, 2025.
Additionally, penalties for missing payroll and excise tax deposits that are due between January 7, 2025, and January 22, 2025, will be waived if the deposits are completed by January 22, 2025.
For full details, please visit the IRS website.
Tax Relief
Claiming Disaster Losses
Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim the losses on either the return for the year the loss occurred (in this instance, the 2025 return normally filed next year), or the return for the prior year (2024). Taxpayers can elect to claim the losses up to the due date of the return to include extensions. For individual taxpayers, this means Oct. 15, 2026. Be sure to write the FEMA declaration number – 4856-DR − on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details.
Qualified Disaster Relief
Qualified disaster relief payments are generally excluded from gross income. In general, this means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details.
Retirement Plan Benefits
Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.
The IRS may provide additional disaster relief in the future.
The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.
Tax-Related Benefits
Since a federal disaster has been declared, certain tax-related benefits are available:
- 401k loan provisions are increased from $50k to $100k.
- Distributions from 401ks of $22,000 can be taken and spread over 3 years of reporting.
- $1,000 of emergency provisions can be taken penalty free, but not income tax free.
Roth IRA Withdrawals
If you own a Roth IRA, you may pull assets from it tax-free if the following conditions are met:
- If you are under 59.5 years of age: you can pull an amount equal to the contributions.
- If you are over 59.5 years of age, and have held the Roth IRA for at least 5 years: you can access the Roth IRA without consequence.
The growth of the Roth may be taxed and subject to penalties.
Financial Tips
- Rebuild your home using as much qualified energy-efficient property as possible to capture tax credit.
- Track and measure disaster-related losses of assts for insurance and tax benefits.
- Consider using cash value in life insurance for cash needs.
- Consider using Roth IRA assets for tax-free cash.
- Consider Health Savings Account assets for health needs.
Donations
If you’re interested in donating to those in need, below is a list of some credible local and national organizations. It’s recommended to track all donations (cash and non-cash) and mileage associated with donations for potential tax benefits.
California Community Foundation – Wildfire Recovery Fund
Ventura County Community Foundation
Los Angeles Fire Department Foundation
Center for Disaster Philanthropy
Helpful Resources
IRS: California wildfire victims qualify for tax relief; various deadlines postponed to Oct. 15
IRS: Tax relief in disaster situations
IRS: Tax Assistance for Disaster Situations
USAGov: Tax relief for federally declared disaster areas
IRS: California wildfire victims qualify for tax relief; various deadlines postponed to Oct. 15