NEW ORLEANS — Days after Hurricane Francine, taxes are probably not top of mind for folks still cleaning up the mess.
“They are thinking about damage to their property and what needs to be done,” said Jackie Perlman with the tax institute at H&R Block.
Perlman says documenting everything could have big impacts on your money.
“Keep excellent records of everything going on. Take photographs of your house and your property. Take photos of the damage,” said Perlman.
Perlman says doing so will help you easily file a casualty loss deduction. With an emergency declaration in place, the IRS will allow you to file it on your 2023 tax return.
“This is a special provision that lets you look back a year and claim a loss on 2023 if you have all information together, you don’t have to wait,” said Perlman. “If you already filed your return, you can do it on an amended return.”
For anyone on a tax filing extension, the IRS has pushed the Oct. 15th deadline back to February 3rd. It’s all designed to give some financial relief as claims from Hurricane Francine start to come in.
“You can see the water line as you come into the house,” said Kenner resident Debbie Ohlsen as she pointed down to her front door after the storm.
Insurance Commissioner Tim Temple says flood claims are outpacing property claims. With the need for help comes people looking to take advantage.
“If you suspect a red flag, then there probably is one,” said Temple.
Temple says there are already people going door to door, offering to help with repairs but more interested in a payout from unsuspecting homeowners.
“Do business with reputable, Louisiana-based companies. Make sure that they’re licensed and contracted to do business in the state, first and foremost,” said Temple.
With plenty of opportunity for more storms this hurricane season, Perlman says now is a good time to get financial records backed up.
“That’s going to be different for different people. It could be writing everything down. It could be keeping a record in the cloud, in your phone, with a trusted friend who lives elsewhere,” said Perlman.
If you have any questions about filing hurricane-related deductions on your tax return, you can speak with your tax preparer.
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