January 4, 2021Share:
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.