IRS Offers Disaster Relief in Illinois

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Today the IRS announced that it will be offering tax relief to victims of severe storms in parts of Illinois.  The destructive weather that began on November 17, 2013 has resulted in the government making disaster declarations in the following counties: Champaign, Douglas, Fayette, Grundy, Jasper, La Salle, Massac, Pope, Tazewell, Vermilion, Wabash, Washington, Wayne, Will and Woodford.

If you live in any of these counties then you will automatically be given extra time to file and pay certain taxes.  Deadlines falling anytime between November 17, 2013 and February 28, 2014 will be extended to February 28, 2014.  If you have been affected by these storms (either personally or indirectly, such as by having a tax preparer in one of these counties) but you do not reside or do business in the affected area, then you may still obtain tax relief by calling the IRS and explaining your individual circumstances.  The IRS disaster hotline is (866) 562-5227.

Maybe this Thanksgiving we should remember to be thankful for great weather, especially here in California.

California Tax News

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Today the California Franchise Tax Board (FTB) announced that it is now accepting 2011 state tax returns.

California is falling in line with the federal government as far as the 2012 filing deadline. You must have your tax return postmarked no later than Tuesday, April 17th for it to be considered timely.  The standard filing deadline is April 15th, but that falls on a Sunday this year. And Monday, April 16th is Emancipation Day, A District of Columbia holiday, which has the same effect as a national holiday when it comes to tax deadlines.  But even though the April filing deadline is the 17th, the extension deadline will still be October 15th for federal tax returns.

  • The top individual tax rate in California decreased from 9.55 percent to 9.3 percent.
  • The standard deduction increased from $3,670 to 3,769 (increase from $7,340 to $7,538 for joint filers)
  • The dependent exemption credit increased from $99 to $315 per dependent (personal exemption increased from $99 to $102 and from $198 to $204 for joint or surviving spouses)
  • Child and dependent care expense credit is worth up to $1,125 for those who qualify

Extension on CA State Taxes Ends October 17th

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The California Franchise Tax Board (FTB) issued a news release on Friday reminding Californians of the extended tax return deadline and also siting some interesting statistics.

Like the IRS, the California tax authority does cut some slack for procrastinators. And like the IRS automatic extension, the California version also comes to an end on October 17th. Sometimes the tax relief most needed is just some more time. The FTB tries to make it as convenient as possible to both file and pay your state taxes.

Filing CA Taxes

  • ReadyReturns (partially completed returns just waiting for the taxpayer to complete online)
  • CalFile free e-file program
  • other free or fee-based e-file services listed on FTB’s website
  • view wage & income information online with MyFTB Account

Paying CA Taxes

And now for the statistics. This year over 1.5 million Californians requested an automatic extension and will have to file by the October 17th deadline. This actually eases the burden on the state in April by spreading out the work a little more evenly throughout the year. By now California taxpayers have filed more than 14.7 million personal income tax returns of which 11.7 million were e-filed. Also, the state has issued 9.5 million refunds totaling $8.1 billion.