Taxpayer Disaster Relief Reminders

As we begin 2021, we wanted to remind you of a few disaster relief provisions created for Hurricane Sally and Zeta victims.

• 2020 3rd Quarter Federal and Alabama estimated payments are due January 15th for Hurricane Sally disaster area taxpayers who originally postponed their payments

–  The Hurricane Sally disaster area includes individuals who reside or have a business in Mobile, Baldwin, and Escambia counties
–  The original 3rd quarter due date was September 15th

• 2020 4th Quarter Federal estimated payments are now due March 1st for Hurricane Zeta disaster area taxpayers

–  The Hurricane Zeta disaster area includes individuals who reside or have a business in Mobile, Clarke, Dallas, Marengo, Perry, Washington and Wilcox counties
–  The Alabama Department of Revenue has not released any information related to extending the January 15th 4th quarter estimated payment date

• For qualified Hurricane Sally and Zeta victims, casualty loss rules are loosened

–  In order to qualify, the loss must have occurred in a federally declared disaster area

–  For Hurricane Sally, this includes Mobile, Baldwin, and Escambia counties
–  For Hurricane Zeta, this includes Mobile, Clarke, Dallas, Marengo, Perry, Washington and Wilcox counties

–  These losses can be claimed even if not itemizing deductions
–  The 10% of AGI floor is also eliminated
–  Unreimbursed amounts in excess of $500 may be deducted

If you have additional questions, please reach out to your Wilkins Miller contact.