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IRS provides tax relief to Texas flood victims; questions remain on pre- and post-disaster actions

July 12, 2025
WCK_responds_to_community_need_after_the_Kerrville_Flood1

Rescue and recovery efforts continue in the Kerrville, Texas, area, which was the hardest hit when the Guadalupe River flooded as the July 4 holiday period was beginning. (Photo by World Central Kitchen, whose volunteers were among the earliest responders, CC BY 4.0)

Thousands of Texans are now dealing with the deadly, tragic flooding across the state. My regional backyard, the Hill Country, was the hardest hit. As of today, the catastrophic count from the July 4 flooding is at least 129 killed, and around 170 people missing.

Obviously, no one even remotely affected by the disaster is thinking about taxes. But, as is usual procedure when the Federal Emergency Management Agency (FEMA) determines there is a major natural disaster, the Internal Revenue Service also acts.

The IRS has announced tax relief for Texas taxpayers impacted by the Independence Day adjacent severe storms, straight-line winds, and flooding that began pummeling the region on July 2.

They now have a Feb. 2, 2026, deadline for various tax matters.

The new deadline applies to individuals and households residing or having a business in Burnet, Kendall, Kerr, Kimble, Menard, San Saba, Tom Green, Travis, and Williamson counties.

These affected individuals and businesses now have until next Feb. 2 to file tax returns and pay any taxes that were originally due when the deadly weather system hit.

Specifically, the IRS notes that the Feb. 2, 2026, filing deadline applies to —

  • Any individual, business or tax-exempt organization that has a valid extension to file their 2024 return due to run out on Oct. 15, 2025.
  • Quarterly estimated income tax payments normally due on Sept. 15, 2025, and Jan. 15, 2026.
  • Quarterly payroll and excise tax returns normally due on July 31, Oct. 31, 2025, and Jan. 31, 2026.
  • Calendar-year partnerships and S corporations whose 2024 extensions run out on Sept. 15, 2025.
  • Calendar-year corporations whose 2024 extensions run out on Oct. 15, 2025.
  • Calendar-year tax exempt organizations whose extensions run out on Nov. 17, 2025.

Note, however, that payments for tax returns on a filing extension are not eligible for additional time to pay those amounts due, since the extensions are only for filing the return, not for paying tax owed. Those payments should have been made by the original April 15 deadline.

Texas flooding FEMA declaration 4879 map 071225-900x600

The IRS tax relief announcement has more information on the flooding tax relief. This includes how taxpayers might be eligible to claim uninsured disaster losses as itemized deductions, and special tax treatment for disaster-related distributions from workplace retirement plans or IRAs.

You also can find out about other relief at the FEMA page dedicated to the Texas flood disaster. FEMA will update its information if other areas are added to the official disaster declaration (DR-4879-TX). Similarly, the IRS’ online tax relief in disaster situations page will be updated as conditions warrant.

FEMA, NWS issues arise: In every disaster, questions are raised about warnings and relief. When you’re affected by horrific weather, it’s normal to wonder whether earlier information could have helped you escape some of the worst damage. Afterwards the storms pass, help never seems to come quickly enough.

However, those concerns have been exacerbated since Donald J. Trump began his second presidential term.

Even before returning to the Oval Office, Trump questioned the need for FEMA. After his inauguration, the Department of Government Efficiency (DOGE) starting making cuts to the National Weather Service (NWS).

Now, some lawmakers and officials, as well as Texans struggling in the devastated areas, are questioning the actions of federal — and, to be fair, the local — government operations they previously had relied on for alerts and assistance.

Since disasters mean our tax dollars, at all government levels, are used, coverage of the Texas flooding warning and response questions earn this weekend’s Saturday Shout Outs.

Shouts and questions: And before you comment on this post or shoot off an email or social media item saying that blame setting is not warranted, especially now when families are grieving, please don’t.

I hear this argument every time a disaster strikes. But I’ve covered enough such events as a journalist and blogger, as well as lived through a few, to know that asking hard questions and getting real answers is necessary so that we all can better prepare for and recover from future disasters.

That’s my take. Below are the shout outs to others who have looked into the matter.

More disasters will happen. Hurricane season doesn’t hit its peak until September. And, as we’ve seen year after year, Mother Nature can bring her worst at any time, to any place.

I know it’s not exactly the reading you were looking for to while away the weekend. But being prepared for a potential worst-case scenario can let you enjoy all the days when that doesn’t happen.

You also might find these items of interest:

 

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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