They may claim a casualty loss on either their 2009 or 2010 returns, according to Sandra Mattia, district manager for Southeastern New England at H&R Block Inc.
This could be beneficial to Eastern Connecticut flood victims, some of whom don't have flood insurance.
"What this means is taxpayers can claim losses from the recent flood disaster on their 2009 tax return and the IRS
will treat the loss as if it happened in 2009 rather than recently," she
wrote in an e-mail article circulated by East Hartford-based financial planner and tax adviser Jonathan D. Ingalls.
"This enables disaster victims to recoup their losses more quickly."
Special conditions apply, so competent tax advice should be sought, Mattia
Flood victims also are getting an extra month to file tax returns this year.
The IRS deadline for people in a declared disaster area is May 11, not the traditional April 15.
"This means the IRS
will not assess penalties or interest if tax returns are filed and other obligations are performed within a specified date," Mattia