California Extended Tax Deadline: Here is what you need to know to avoid taxes

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California Extended Tax Deadline: Few weeks remain until the tax filing deadline for the majority of California residents. The following information will help you avoid any tax penalties.

As a result of the winter storms from 2022 to 2023, the IRS granted most California residents and businesses a six-month extension on filing federal tax returns; the state quickly followed suit. Previously, the IRS extended the deadline from April 18 to May 15.

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The current deadline is October 16.

“As communities across the state continue to recover from the damage caused by winter storms, California is working swiftly to help recovering Californians get back on their feet,” Gov. Gavin Newsom said in a March press release announcing the extension.

What Regions and Tax Returns Qualify?

Fifty-five of California’s 58 counties — except Lassen, Modoc and Shasta — are eligible for the extended deadline. If you reside in one of the affected counties, your eligibility is automatically determined.

Included among eligible returns and payments are the following:

2022 individual income tax returns and payments normally due on April 18.
For eligible taxpayers, 2022 contributions to IRAs and health savings accounts
. Quarterly estimated tax payments normally due on April 18, June 15 and Sept. 15.
Calendar-year 2022 partnership and S corporation returns normally due on March 15.
Calendar-year 2022 corporate and fiduciary income tax returns and payments normally due on April 18.
Quarterly payroll and excise tax returns normally due on May 1 and July 31. Calendar-year 2022 returns filed by tax-exempt organizations normally due on May 15.

About Penalties

If you submit and pay your taxes on time, you will not be penalized.

According to the Franchise Tax Board, penalties typically apply when you commit one of the following:

Not filing on time
Not paying on schedule
Insufficient anticipated tax payment
Have insufficient taxes withheld from your paycheck.
Don’t use electronic payment when it’s required. Make a dishonored payment (insufficient funds, canceled check).

For instance, if you file late or don’t file, you may be subject to a 5% penalty of the amount due from the original due date, less any payments or credits made on or before the original due date of your tax return, for each month or part of a month unpaid.

If you pay late or don’t pay at all, you may be charged 5% of the unpaid tax plus.5% of the unpaid tax for each month or portion of a month that the tax remains outstanding.

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How Do You Claim a Disaster Loss On Your Taxes?

You may claim a disaster loss on either your original or amended 2022 tax return.

When filing online, you will use the catastrophe code from the Franchise Tax Board’s list of California disasters.

Disaster
Name of disaster from the list of disasters
The year the loss occurred

For instance, this would appear as follows: Disaster Camp Fire 2018.

You must also include a statement with the date of the catastrophe, its location (including the city, county, and state), and your decision to deduct the loss in the taxable year preceding the year the disaster occurred (this last part is optional).

A completed federal Casualties and Thefts Form 4684
Any supporting federal schedules that verify your deduction
Any federal schedules corroborating your deduction

You may also need to provide the following California forms:

Sales of Business Property (Schedule D-1)Schedule D-1 instructions
Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations Individuals, Estates, and Trusts (FTB 3805V)FTB 3805V instructions
Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations Corporations (FTB 3805Q)FTB 3805Q instructions