In the aftermath of disasters such as the July flooding in the Hill Country and other parts of Texas, taxes and tax returns are not issues victims are immediately thinking about. Even so, there are actions that can be taken immediately that should ease future tax filings in the wake of disaster.
Texas State University Department of Accounting faculty members Carolyn Conn, Ph.D., and Christopher Proschko, J.D., have compiled the following guidance for those recovering from the flooding:
- Save receipts for all costs associated with the disaster (including temporary housing) as well as medical care and doctors’ notes.
- Keep a log of all miles driven because of the disaster, including to/from homes damaged by flooding and storms, to/from stores for building materials for repairs, and to/from medical treatment related to the disaster and for acquiring related medication.
- Keep documentation of all insurance and FEMA payments received as reimbursements for disaster losses.
Receipts can be hard copy or electronic (such as emailed from a store). For flood victims who lost computers and, possibly, access to email, the receipts should still be available from an email account several months from now when it is time to file a tax return. Emailed receipts may be simpler to avoid the need to keep up with hard copies. If hard copies are easier to manage, put them together in a resealable plastic bag. Receipts may be sorted later. Receipts for medical care and doctors’ notes may be available online via a portal. If you do not already have that service, consider signing up for it.
Deadlines for federal tax returns and tax payments have been automatically extended by the IRS to Feb. 2, 2026, for people who live or own a business in FEMA-declared disaster areas: Burnet, Edwards, Guadalupe, Kendall, Kerr, Kimble, Lampasas, McCulloch, Menard, Real, Reeves, San Saba, Schleicher, Sutton, Tom Green, Travis and Williamson counties. Taxpayers do not have to request an extension. For the most current information, call: IRS Special Services at (866) 562.5227 or refer to the IRS website.
The IRS automatic extended deadline of Feb. 2, 2026, applies to returns and payments as follows:
- Any individual, business or tax-exempt organization with a valid extension to file their 2024 return due to end on Oct. 15, 2025.
- Quarterly estimated income tax payments usually due Sept. 15, 2025, and Jan. 15, 2026.
- Quarterly payroll and excise tax returns usually due July 31, Oct. 31, 2025, and Jan. 31, 2026.
- Calendar-year partnerships and S corporations whose 2024 extensions end Sept. 15, 2025.
- Calendar-year corporations whose 2024 extensions end Oct. 15, 2025.
- Calendar-year tax exempt organizations whose extensions end Nov. 17, 2025.
2024 tax returns may qualify to be amended to report non-reimbursed 2025 casualty losses as a “carryback” to 2024. However, that would be only for taxpayers who filed itemized returns in 2024. It will require the same documentation previously mentioned (2025 receipts, mileage logs, etc.).
Deadlines for State of Texas tax returns and tax payments may be extended for up to 30 days from the due date if the taxpayer suffered disaster losses. Governor Abbott declared disaster areas as: Bandera, Bexar, Burnet, Caldwell, Coke, Comal, Concho, Gillespie, Guadalupe, Hamilton, Kendall, Kerr, Kimble, Lampasas, Llano, Mason, Maverick, McCulloch, Menard, Reeves, San Saba, Sutton, Tom Green, Travis, Uvalde and Williamson counties. Note that the extensions must be requested. For the most current information about Texas state taxes, call Comptroller Special Assistance at 1-800-252-5555 or refer to the Texas Comptroller's Office website.
Examples of State of Texas items that may be extended upon request include:
- Sales and use tax returns
- Sales tax prepayments
- Alcohol sales reports
To request an extension to file and pay state taxes, email ExtensionRequests@cpa.texas.gov. In the email request for an extension, one must include:
- Taxpayer name
- Taxpayer number
- Tax type(s) for which the extension is requested
- Affected filing period(s)
- Name, phone number and email address of the person making the request
- Reason for request
In addition to the toll-free numbers and websites provided above, flood victims may also obtain detailed guidance from a CPA or other tax professional.