IRS extends tax, HSAs deadlines for employers impacted by hurricanes

Deadline extensions apply in seven states, depending on the onset of destruction.

Hurricane Milton as of October 7, 2024. Credit: NOAA

Employers impacted by Hurricane Helene and Hurricane Milton during the past few weeks may have access to disaster-related tax relief related to tax returns, payments and tax-advantaged accounts including Health Savings Accounts (HSAs.)

The IRS has postponed deadlines for affected taxpayers falling on or after each impacted state’s effective date. Taxpayers in these areas now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments. Among other things, this includes 2024 individual and business returns normally due during March and April 2025, 2023 individual and corporate returns with valid extensions and quarterly estimated tax payments.

Deadlines applying to tax-advantaged accounts, such as 2024 HSA contribution deadlines, that fall within this time period are also extended to May 1, 2025, according to a blog penned by HealthEquity director of product compliance Jason Folks. The extensions give eligible taxpayers additional time to make 2024 contributions to their HSAs as well as more time for tax filing.

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal, the IRS said. 

Related: Hospitals scramble to address medical supply shortage from Hurricane Helene

Impacted states for which the deadline extensions apply include:

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