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President Biden and Governor Newsom declared a state of emergency throughout California in response to the recent winter storms. These declarations mean residents and businesses in California who have been affected by severe storms, flooding, and mudslides are eligible for tax relief.
The California Franchise Tax Board (FTB) and the IRS have extended the filing and payment deadlines for the current tax year (2022) for individuals and businesses in California until May 15, 2023.
This relief applies to those in the declared disaster area, which includes 41 of California's 58 counties: Alameda, Butte, Calaveras, Colusa, Contra Costa, El Dorado, Fresno, Glenn, Humboldt, Kings, Lake, Los Angeles, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Benito, San Bernardino, San Diego, San Francisco, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Siskiyou, Solano, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Tulare, Ventura, Yolo, and Yuba.
Impacted taxpayers may also be eligible to claim a disaster loss on their tax return, or qualify for property tax relief and keep their Prop 13 base year value when the home is rebuilt in a similar manner.
More information on the FTB tax relief can be found here, and additional details from the IRS can be found here.
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