Liberty Tax Service Offers Free Amending of Returns for Flood Victims in Federal
Disaster Areas of Massachusetts, Rhode Island, New Jersey and West Virginia
(Virginia Beach, VA) Taxpayers residing in federal disaster areas of Massachusetts, Rhode Island and West Virginia now have an extended deadline of May 11 to file their federal and state tax returns. For residents of those areas who have filed a 2009 return, Liberty Tax Service offices will offer free amended 2009 tax returns. Filing a loss on a 2009 return will help taxpayers receive any refunds due that may aid in rebuilding.
“Determining your casualty losses can be a confusing process, and our goal is to help those who are in need during a very traumatic time,” said John Hewitt, CEO of Liberty Tax Service. “Our office is open to provide service and free advice for the tax impact of claiming losses.”
Special circumstances apply because the President has declared certain areas federal disaster areas due to recent severe flooding. Taxpayers must claim a casualty loss in the year in which they suffered the loss unless they are in an area determined by the President to warrant federal disaster assistance. In this case, taxpayers have a choice of deducting their casualty loss on the current year return, or deducting the loss on the prior year return. This can be done by filing Form 1040X, Amended U.S. Individual Income Tax Return.
Casualty and theft losses for personal property can be claimed as the result of destruction from unanticipated weather events such as hurricanes, tornadoes, floods, etc, by filing Form 4684, Casualties and Thefts, Section A. Taxpayers who have incurred property losses should file insurance claims promptly. If the property is not completely destroyed, determine the loss by figuring the decrease in fair market value minus any insurance reimbursements.
Rental property, which is claimed on Form 4684, Section B is handled differently. If the property is rental property, or other income-producing property that is completely destroyed, the deductible casualty loss amount is the adjusted basis in the property minus insurance or other reimbursement. If the property isn’t completely destroyed, the deductible casualty loss is the lesser of either the decrease in the fair market value, or the adjusted basis of the property before the loss minus any insurance received.
Massachusetts Federal Disaster Areas: Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk and Worcester counties.
Rhode Island Federal Disaster Areas: Bristol, Kent, Newport, Providence, and Washington counties.
West Virginia Federal Disaster Areas: Fayette, Greenbrier, Kanawha, Mercer and Raleigh counties.
New Jersey Disaster Areas: Atlantic, Bergen, Cape May, Essex, Gloucester, Mercer, Middlesex, Monmouth, Morris, Passiac, Somerset, and Union counties.
About Liberty Tax Service
Call 866-871-1040 to be directly connected to the nearest Liberty Tax office. Liberty Tax Service is the fastest growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 7,000,000 individual income tax returns. With 41 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service (NYSE:JTX). Liberty Tax Service provides computerized income tax preparation, electronic filing, and online filing through eSmart Tax. Each office offers customers audit assistance, a money back guarantee, and free tax return checking. The Liberty Tax Service franchise opportunity is #9 on the fastest growing franchises list of the 2010 Entrepreneur “Franchise 500.”