September is National Preparedness Month — an annual outreach campaign sponsored by the U.S. Federal Emergency Management Agency (FEMA).
The goal of the program, which ends with a national day of action on Sept. 30, is to raise awareness of the need for people to prepare for all types of emergencies, including natural disasters.
Disaster preparedness
Disaster preparedness has been especially important in recent years. Numerous wildfires, storms, and other natural disasters, have already devastated homes and families in 2024.
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- For example, there have been 20 confirmed weather disasters in the U.S. so far this year, according to the Natural Centers for Environmental Information (NCEI).
- That number only includes weather disasters where damages were $1 billion or more. (The number of natural disasters in 2024 could be significantly greater.)
Severe weather and other types of emergencies can occur at any time, so it’s a good idea to prepare now if you haven't already.
In addition to building a supply kit and developing a specific evacuation plan, your disaster plan should, the IRS says, include ways to protect important documents and information.
Preparedness plan
Taxes probably aren’t the first thing that comes to mind when you think about National Preparedness Month, but natural disasters often impact federal and state tax filing and payments.
That's why the IRS encourages taxpayers to have a preparedness plan that includes securing and duplicating essential documents so they know where to find information if needed.
For example, tax information and documents could become damaged or lost. More importantly, damages resulting from a storm may cause a change in your financial circumstances. That can affect your ability to pay taxes on time.
Thankfully, there are some steps you can take to help secure and protect information and documents in preparation for possible disasters.
How to keep tax documents safe
You can reduce the chance of losing essential documents — including tax paperwork — in the event of a natural disaster by taking a few precautions.
- Lock documents in a fire and waterproof safe.
- Make copies of documents, and keep them at another location (such as a trusted relative’s home). If you do this, the home you choose should be outside of your potential disaster area.
- Scan important paper documents to store them digitally.
Keep in mind that how long you should keep tax records can vary, but past tax returns aren’t the only documents you should protect. You should also secure receipts related to your business or for certain home improvements. (Some of those improvements might qualify for a tax credit, and your insurance company may require receipts if you need to submit a claim.)
It is also wise to take inventory of business assets, including photo and video evidence, if your belongings become lost or damaged (be sure to also write down the year, make, and model numbers, where appropriate).
You may be able to claim these losses when you file your tax return, and photo evidence may also be important for submitting insurance claims.
For tips on reconstructing records, see the IRS resource page.
Is the IRS extending deadlines for storms in 2024?
If you are impacted by a natural disaster, IRS tax relief may be available. For example, the IRS has issued states with tax deadline extensions this year, including recent tax deadline extensions for flooding in New York and Tropical Storm Ernesto victims.
This means you may have more time to file and pay federal taxes if you are impacted by a federally declared-disaster. (The IRS frequently adds to the list of states with tax extensions as natural disasters occur.)
Eligible individuals located outside a disaster area may also be able to request relief. Call the IRS disaster hotline at 866-562-5227 to see if you qualify.
Can you write off storm damage on your taxes?
Taxpayers impacted by a disaster should check with their state’s Department of Revenue to see what relief might be available.
In addition to tax deadline relief, individuals and businesses may be able to claim uninsured and unreimbursed disaster losses when filing their federal tax returns. Casualty and disaster losses may reduce your adjusted gross income (AGI), which can lower overall tax liability.
Disaster preparedness sales tax holidays
Some states, including Florida and Texas, have sales tax holidays that allow shoppers to purchase certain disaster preparation products tax-free. National Preparedness Month is a good time to take stock of your supply of these or other important items.
Below are some items that are commonly tax-exempt during these sales tax holidays.
- Generators
- Household essentials (for example, batteries and pet food)
- Flashlights and portable radios
Larger items, such as impact-resistant doors and windows, may also qualify as tax-free in some states. Taxpayers should check their state’s website for more information about possible tax-free periods in their area.
For more information on National Preparedness Month, visit the federal Ready! website.
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