Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Watch Live

Politics

Wildfire Victims Might Be Eligible For Quick Tax Refunds

A firefighter puts water on a house fence in Carlsbad, California, May 14, 2014.
Associated Press
A firefighter puts water on a house fence in Carlsbad, California, May 14, 2014.

San Diego County residents who suffered damages in the May wildfires might be able to generate a quick refund by applying their losses to their 2013 taxes, the state Franchise Tax Board announced Thursday.

A bill by Assemblyman Brian Maienschein, R-San Diego, that designated the fires as a state disaster was signed into law by Gov. Jerry Brown. According to the state tax agency, special tax rules allow victims to claim a loss in either the year the disaster occurred or in the prior year.

Typically, taxpayers must deduct losses only in the year of the disaster, FTB officials said. The advantage of claiming damages in the prior year is that the loss will generally reduce the prior year tax liability, creating a refund that the tax board can issue quickly.

Advertisement

San Diego County was struck by 14 wind-driven brush fires in May, which collectively scorched 25,000 acres and caused nearly $30 million in property damage.

Disaster victims who have not yet filed their 2013 tax return can claim their loss on their original tax return, according to the FTB. Taxpayers who have already filed their 2013 tax return can claim a disaster loss against that year's income by filing a Form 540X, Amended Individual Income Tax Return.

Taxpayers should write, "DISASTER — SAN DIEGO WILDFIRES 2014" in red at the top of their tax returns. Disaster victims have until Oct. 15 next year to make their disaster loss deduction on their 2013 taxes. Different deadlines apply for fiscal year filers.

Taxpayers who need copies of lost or damaged state returns should complete Form FTB 3516, "Request for Copy of Tax Return," which can be downloaded online. Disaster victims can receive copies of tax returns for no charge by writing, "DISASTER — SAN DIEGO WILDFIRES 2014" in red ink across the top of their request.

More details are available in FTB Publication 1034, "Disaster Loss How to Claim a State Tax Deduction," at FTB's website at ftb.ca.gov.

KPBS has created a public safety coverage policy to guide decisions on what stories we prioritize, as well as whose narratives we need to include to tell complete stories that best serve our audiences. This policy was shaped through months of training with the Poynter Institute and feedback from the community. You can read the full policy here.