Tax Relief Resources for Those Impacted by the LA Wildfires

The devastating wildfires in Los Angeles have left many individuals and businesses facing financial and emotional hardship. If you’ve been affected, you may be eligible for tax relief to help ease the burden. Scout Financial is here to guide you through available benefits and ensure you maximize the assistance offered.

Natural disasters disrupt lives in unimaginable ways, causing loss of property, income, and financial security. In response, the IRS, the State of California, and the City of Los Angeles have implemented tax relief measures to help affected individuals and businesses recover. Below are some key tax benefits that wildfire victims in LA may be eligible for, along with detailed explanations of how to claim them.

Federal Tax Relief

Extended Tax Deadlines

The IRS has extended deadlines for affected taxpayers in Los Angeles County:

• Individuals and businesses now have until October 15, 2025, to file federal tax returns and make tax payments originally due between January 7 and October 15, 2025.
• This extension applies to income, payroll, and excise tax returns.

Claim a Casualty Loss Deduction

If you suffered property damage or loss due to the wildfires, you may be able to deduct these losses on your federal tax return:

• The Federal Disaster Tax Relief Act enhances these deductions, allowing victims to add their casualty losses to the standard deduction, removing the 10% adjusted gross income limit, and raising the minimum loss value that can be claimed.
• The IRS allows affected taxpayers to claim losses in the year they occurred or amend a prior year’s return to receive a faster refund.
• Proper documentation—such as photos, repair estimates, and insurance claims—is essential when filing.

California State Tax Relief

Extended State Tax Deadlines

The California Franchise Tax Board (FTB) has aligned with federal extensions, granting affected taxpayers until October 15, 2025, to file state tax returns and make payments.

Property Tax Relief

Property owners may qualify for property tax relief if their properties were damaged or destroyed by the wildfires:

• This relief can include a reassessment of property values, potentially lowering property taxes.

City of Los Angeles Tax Relief

Business Tax Waiver

• Mayor Karen Bass issued an Emergency Executive Order waiving the 2025 business taxes for businesses impacted by the fires.
• The Office of Finance is currently drafting an ordinance to implement this waiver.

Extended Business Tax Renewal Deadline

• The annual Los Angeles City Business Tax filing deadline has been extended from February 28, 2025, to April 14, 2025, for businesses affected by the wildfires, particularly those in specific ZIP codes.

Tax Relief for Destroyed or Disrupted Businesses

• The city offers a business tax relief program to businesses that a disaster destroys or severely disrupts for at least 45 days.
• This includes businesses that operate at home and face damage from a disaster.

Steps to Take to Claim Your Tax Relief

1. Determine Your Eligibility

Check whether federal or state officials mark your area as a disaster zone. Additionally, the IRS, FEMA, and California FTB provide official lists of affected regions.

2. Gather Documentation

Keep thorough records of property damage, loss of income, and expenses related to the disaster. Moreover, photographs, receipts, and insurance claims are essential for substantiating your claims.

3. Seek Professional Assistance

Navigating tax relief claims can be complex. Scout Financial is here to ensure you don’t miss out on any available benefits and help streamline the process.

Let Scout Financial Help You Rebuild with Confidence

Recovering from a disaster takes strength, support, and the right guidance. At Scout Financial, we work to make sure you get the relief you deserve, without the stress. We understand the ins and outs of post-disaster financial relief and will help you take advantage of every opportunity available. Don’t face this alone. Contact Scout Financial today and take the first step toward financial recovery and peace of mind.