The IRS has once again extended the tax filing and payment deadlines in most parts of California due to destruction caused by landslides, mudslides, and severe storms. Now those Californians have until October 16th to file, as opposed to the previously announced May 15th date.

The IRS has extended the fourth quarter 2022 estimated tax payment deadline to October 16th. The 2023 estimated tax payments due on April 18th, June 15th, and September 15th, as well as the quarterly payroll and excise tax returns due on January 31st, April 30th, and July 31st, have also been delayed until October 16th. No contact or extension paperwork is necessary to take advantage of the extended time. If taxpayers receive penalty notifications within the postponed period, they should contact the number provided for the penalty to be waived.

Home ownership can provide a number of tax benefits. For example, you may generally claim a tax deduction for mortgage interest for your main home, along with eligible mortgage insurance premiums, up to the current IRS limit. However, you may only claim these benefits if you itemize deductions, rather than taking the standard deduction for your filing status. The home mortgage interest deduction may be particularly valuable for new homeowners, since payments during the early years of a mortgage consist primarily of interest charges.

In addition to home mortgage interest and mortgage insurance premiums, homeowners may generally deduct state and local property taxes. However, property tax deductions may be subject to the general $10,000 deduction limit for state and local taxes. Also, in order to deduct property taxes, you must itemize deductions on your return, rather than taking the standard deduction.

Non-deductible home ownership expenses include utilities, repairs, insurance (other than mortgage insurance), most closing costs, depreciation, homeowners’ association fees, and payments on the principal of a mortgage loan.

If you receive a Mortgage Credit Certificate (MCC) from your state or local government, you may also qualify for the Mortgage Interest Credit. This credit can reduce your tax on a dollar-for-dollar basis, and you do not need to itemize deductions in order to claim it.