Tax Law
From KatrinaLegalRelief
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Did Katrina affect the time I have to file my tax returns or pay taxes I owe?
Taxpayers affected by Katrina have until February 28, 2006 to file any tax returns (income, estate, gift, excise or employment) and to pay any taxes with an original or extended due date on or after August 29, 2005. If you are in an “individual assistance area, this relief will be automatic; if you are in an area where damage is more isolated, you will need to identify yourself as a hurricane victim by writing“Hurricane Katrina” in red ink at the top of any tax forms or documents. In Mississippi, residents of the following counties are eligible for automatic relief:Adams, Amite, Attala, Claiborne, Choctaw, Clarke, Copiah, Covington, Franklin, Forrest, George, Greene, Hancock, Harrison, Hinds, Jackson, Jasper, JeffersonDavis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, Yazoo. You will not be liable for any interest, late payment, late filing or failure to deposit penalties that would otherwise apply. This relief applies to returns, extended returns, estimated tax payments and Employment and excise tax deposits.
Must I include assistance payments in my reported income?
You are not required to report as income any qualified disaster relief payments from government agencies, from charitable organizations or from your employer for living, medical, transportation, food or other related expenses.
Can I deduct my losses from Katrina on my tax return?
You may deduct casualty losses on your income tax return. A casualty loss is one resulting in damage, destruction, or theft of property held for personal use, business, or investment purposes. While normally, to be deductible, a casualty loss must be at least $100 if personal property and exceed 10% of your adjusted gross income, these limits will not apply to Katrina losses. You determine the amount you may deduct by determining the decrease in the fair market value of your property because of Katrina; you may not deduct amounts reimbursed by insurance.
Did Katrina affect my Earned Income Credit or Child Credit?
Those with a principal place of residence in a Katrina disaster area may calculate both credits using their 2004 earned income.
