12 New Jersey Counties Get Tax Deadline Extension Due to Recent Floods/Storms

New Jersey residents who live in counties affected by recent storms and floods in the Northeast will get an extension for filing their federal and state taxes this year.

According to WPIX-TV in New York City, residents of the following 12 counties in New Jersey qualify for this tax filing extension: Bergen, Essex, Passaic, Atlantic, Cape May, Gloucester, Union, Mercer, Middlesex, Morris, Monmouth, and Somerset. These counties were declared federal disaster areas by President Obama. Instead of the traditional April 15^th deadline, residents of these counties now have until May 11^th 2010 to file their federal and state taxes. The IRS will automatically 'read' your county of residence and apply to deadline extension to you. You will not have to fill out addition paperwork to prove your residency qualification. You also do not have to be a victim of these storms to qualify for this extension.

In addition to the extra time for preparing and filing taxes, residents of these New Jersey counties will benefit from this extension in two other ways:

They will have the option for claiming flood related losses on either their 2009 or 2010 tax return. Claiming losses on the 2009 tax return could result in greater tax savings

They will have extra time to make a tax deductible contribution to their IRA.

What you should do if you were affected by floods?

Mike Dishaw is a CPA in the New York/New Jersey area. I recently spoke to him about what New Jersey flood/storm victims should do with regards to filing their taxes this year. He provided the following advice:

-Contact all institutions that sent you tax documents for 2009 and ask for copies of documents that you lost in the floods. This would include documents from: banks, mortgage firms, employers, and insurance companies. Explain to these institutions that you live in a federally declared disaster area and need this paperwork for filing your taxes as well as for your own records

-If you have flood insurance, check your policy and see what is covered and what is not. Get an appraisal on items that were damaged or lost due to floods. Remember, you can claim these losses on either this year's (2009) or next year's (2010) taxes. If you are claiming losses, you should put Disaster Designation "New Jersey/Severe Storms and Flooding" at the top of the page.

-If you already filed your taxes and lost your paperwork due to floods, go to www.irs.gov to request a copy of your tax returns to have for your records. If you have your taxes done by a tax preparer, ask him/her for assistance with requesting copies of returns. Make sure you put the Disaster Designation in red ink at the top of your paperwork to avoid any fees.

-Should you need extra time with preparing your taxes this year, contact the State of New Jersey Division of Taxation and the IRS and request an extension for filing your taxes this year.

For more information, visit the IRS website here.

Disclaimer: Mike Dishaw is a family friend and my account/tax preparer

Sources:

IRS website

Glorioso, Chris, Tax 'break' for New Jersey flood counties, deadline extended, April 6, 2010, WPIX-TV website

Personal communication with Mike Dishaw, CPA