Hi,
If you were affected by Hurricane Isaias in Alabama, the IRS has already moved many of your tax deadlines to February 4, 2027, and you don’t need to file anything to get it. Many people also miss the deductions that come with it, usually because they assume disaster relief is only for people who lost their home.
If any of these apply to you, there’s a good chance you qualify:
- You live or run a business in one of 40 Alabama counties, including Mobile, Baldwin, Montgomery, and Tuscaloosa
- Your home, car, equipment, or inventory was damaged and not covered by insurance
- You have estimated tax payments or a quarterly payroll return coming due before February
Here’s how the relief works:
- Postponed deadlines – filing and payment deadlines on or after October 7 now run to February 4, 2027, including estimated taxes and payroll returns normally due November 2. Payroll deposit penalties are waived if you deposit by October 22
- Loss deductions – if your area is covered by a federal disaster declaration, you can deduct uninsured losses after a $100 reduction and 10% of your income. $20,000 of damage with $100,000 of income = $9,900 deductible. Business property isn’t subject to those limits
- Choosing the year – if your county is approved for FEMA assistance, you can claim the loss on your 2025 return for a faster refund
- Retirement withdrawals – if a federal major disaster is declared for your area, you may be able to withdraw up to $22,000 without the 10% penalty
The catch is that the deadline relief is automatic, but the deductions are not. They depend on a federal declaration for your county and records of what was damaged. That’s why the best time to sort this out is now, not in February.
Reply to this email by Friday and we’ll set up a free 15 minute call with our senior tax advisor to go over your situation. Bring a list of what was damaged, and your most recent tax return.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com