IRS Offers Tax Relief for Hurricane Debby Victims in Vermont

In response to the impact of Hurricane Debby, the IRS has announced tax relief measures for individuals and businesses in all 14 counties of Vermont affected by the disaster. This relief extends the deadline for filing various federal tax returns and making payments until February 3, 2025. The IRS has indicated that similar relief will be available for other counties and states that may be designated as disaster areas in the future. While tax payments for 2023 returns, which were due on April 15, 2024, are not eligible for this relief, the IRS is allowing additional time for individual taxpayers to make quarterly estimated income tax payments due on September 16, 2024, and January 15, 2025. Taxpayers can find comprehensive details regarding qualifying returns and payments on the IRS disaster assistance webpage. The IRS automatically provides relief to taxpayers with an address in the disaster area, and it will assist those living outside the area but needing access to records located within it. Notably, the Tax Cuts and Jobs Act has limited casualty loss deductions for most taxpayers; however, those in federally declared disaster areas can still claim these deductions. Affected taxpayers have until October 15, 2025, to elect to exclude certain government assistance funds from their gross income, which can include money for personal, family, living, or funeral expenses, as well as home repairs. Further information on tax-related actions qualifying for relief is available on the IRS website.