The Franchise Tax Board announced additional tax filing relief for Californians affected by the September wildfires. Taxpayers in certain governor-declared disaster areas are granted an extension to Jan. 15, 2021, to file California tax returns on 2019 income and make any tax payments that would have been due between Sept. 4 and Jan. 15.
“With more time to file and make certain payments, we hope to provide some relief to families and workers affected by these devastating wildfires,” said State Controller and FTB Chair Betty T. Yee.
This relief is separate from that provided on Aug. 28 for the California wildfires that began in August.
FTB’s extension until Jan. 15, 2021, applies to individuals and businesses in the same 10 counties the IRS granted relief to on Oct. 19 and Oct. 23: Fresno, Los Angeles, Madera, Mendocino, Napa, San Bernardino, San Diego, Shasta, Siskiyou, and Sonoma. Any counties added later to the disaster area will be granted the same extension of time to file. The tax relief postpones various tax filing and payment deadlines that occurred starting on Sept. 4, including the following:
– Individual filers whose previous tax-filing extension was set to end October 15. Because tax payments related to these returns were originally due on July 15, any payments associated with these filings are not eligible for relief.
- Business entities with a due date between September and Jan. 15.
- Quarterly tax payments due Sept. 15.
Taxpayers should write the name of the disaster (for example, Glass 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 extended postponement period, the taxpayer should call the number on the notice to have the penalty abated.
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. For a complete list of all disasters declared by the governor, see the “List of Disasters” chart on FTB’s disaster loss webpage (ftb.ca.gov/file/business/deductions/disaster-loss.html). Additional information and instructions are available 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.
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 nontax 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 75 percent of the state’s general fund. For more information on other taxes and fees in California, visit taxes.ca.gov.