As multiple wildfires blaze through California, tens of thousands of fire victims are left wondering what to salvage and how to rebuild.
President Biden made a major disaster declaration in support of the ongoing efforts to extinguish the wildfires devastating the Los Angeles Area. The fires across Palisades, Eaton, Hurst, and Woodley have been cited as the most destructive in California’s history.
The Presidential Declaration grants state, tribal, and local governments access to federal assistance funding. It also includes Individual Assistance programs for affected citizens and businesses, including temporary accommodation for evacuees, home and business repairs, and low-cost loans to cover uninsured property losses.
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As of January 9, the Associated Press reported that roughly 130,000 people were told to evacuate from their homes, nearly 2,000 homes and buildings have been destroyed and nearly 400,000 homes and businesses have lost power.
The devastating disaster comes as State Farm, one of the largest private insurers in the state, reportedly dropped 70% of its policies in Pacific Palisades.
If you or a loved one have been impacted by the wildfires, the last thing you want to think about is taxes. But it’s important to know how to recover key documents especially if you will claim casualty losses. Here is some information on what you can do to recover some of your lost records.
Reconstructing your tax records
To apply for federal assistance or insurance reimbursement in the wake of a natural disaster, having your state and federal tax records can simplify the claims process as you rebuild.
Your tax records serve as proof of income, property ownership, and losses that may be eligible for federal disaster-related deductions or government relief. As reported by Kiplinger, the IRS may allow you to recover your federal tax records for free.
Some tax records you’ll want to recover include your W-2s, 1099s, or prior tax returns.
Where can you get your federal tax records?
- You can get free return transcripts immediately by using the Get Transcript tool on IRS.gov.
- You can also request transcripts by phone, or by calling 800-908-9946.
- To get a copy of your tax returns via mail, you must file Form 4506, Request for Copy of Tax Return.
Recover a copy of your California state tax return
As you recover tax statements, you’ll want to have a copy of your local state tax return. These can be requested via mail to the California Franchise Tax Board, or online.
If you are a victim of a federally declared disaster or California state disaster, requesting your tax returns is free of charge. You can request access to your records in two ways:
1. You can request a free copy of your California tax return immediately by visiting MyFTB online.
2. You can also request a copy by submitting a Request for Copy of Tax Return (Form FTB 3516) or a written request. There is generally a $20 fee for each tax return you request unless you are a victim of a designated California state disaster or federal disaster
There is one caveat: if you wish to issue a written mailed request, you’ll need to provide some additional information. Copies of mailed state returns are also limited to the following tax years:
- Copies of personal income tax returns are available for the last three and a half years.
- Copies of partnership returns are available for the last three and a half years from the original due date of return.
- Copies of corporation, exempt organization, and limited liability company returns are available for the last five years.
Requesting casualty loss deductions
Once you have your tax records, taxpayers in a federally declared disaster area can claim a casualty loss deduction on their federal income tax return.
This can help you deduct certain personal-use property losses or business losses that aren’t included in your insurance. These can be claimed by filing the following documents:
- File a Schedule A, Form 1040, or an amended return using Form 1040-X.
- You must include Form 4684 to report your losses from the natural disaster.
- In the case of a federally declared disaster, you can deduct losses on the return for the tax year preceding the year in which the disaster occurred.
Recover vital records like your birth certificate
If you’ve lost vital records such as birth, death, or marriage record as a result of the disaster, you can contact the California Department of Public Health (CDPH). The agency is actively working to help victims of the wildfires to recover their lost documents.
For more information, you can visit the California Department of Public Health digital list of county recorders. You may also call 916-445-2684; TTY 7-1-1 or 1-800-735-2929.
Lost DMV documents, drivers licenses, or identification cards:
You can contact the California Department of Motor Vehicles (DMV) to replace your lost DMV documents, including your driver's licenses, identification cards, vehicle certificates, and certificates of title that were lost during the disaster.
Contact DMV at 1-800-777-0133 (TTY 1-800-735-2929 or 1-800-368-4327 for hearing or speech impaired). You can also visit the DMV website.
Replacing your passport:
If your passport was lost or damaged as a result of an eligible major disaster, federal law waives passport application and file search fees for a certain amount of time. To recover your passport, you must:
- Complete Form DS-5504, Replacement Passport Form
- Get a new passport photo
- Complete Form DS-64 (Lost and Stolen Passport Form). Make sure to include the name of the disaster that caused the loss, the address where you lost your passport, and the approximate date when the loss happened.
If you are traveling in less than three weeks, make an appointment immediately to apply at a passport agency or center.
What’s next for Californians recovering from wildfires
If you are a victim of a federally declared disaster, you’ll need to recover your tax documents to start claiming disaster-related benefits.
While the IRS implements tax deadline extensions for states impacted by federal disasters, the sooner you act the better. Those affected by the California wildfires can now request FEMA, state government assistance, or may be eligible for assistance from their employer.
Separately, President Biden recently signed the Federal Disaster Tax Relief Act into law. As reported by Kiplinger, the new law targets tax relief for natural disaster victims — including California wildfire survivors for disasters dating back a decade.
Qualified disasters protected under the law also include those that occur 60 days after the date of the law’s enactment, signed on Dec. 12, 2024.
For now, stay tuned to local or government authorities on how to proceed as the California fires continue to be monitored and extinguished. The IRS may also provide updates regarding California tax deadline extensions due to the disaster.
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