In August 2025, severe storms, flooding, straight‐line winds, and mudslides struck parts of southeast Wisconsin—including Milwaukee, Washington, and Waukesha counties—causing property damage, business interruption, and widespread hardship. In response, federal, state, and local authorities have put in place several relief programs and tax relief measures to assist residents. Below is a summary of who qualifies, what relief is available, deadlines, and what you should do if you’re affected.
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What Has Been Declared & Why It Matters
• On September 11, 2025, a major disaster declaration was issued by the President for the counties affected (Milwaukee, Washington, Waukesha), which triggers multiple forms of federal relief.
• As of that date, various programs—FEMA Individual Assistance, Small Business Administration disaster loans, IRS tax relief, etc.—became available to help people recover.
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The Key Tax & Related Relief Measures
Here are the most relevant tax relief and financial assistance steps residents and businesses should know.
IRS Deadlines Postponed
Because of the disaster declaration, the IRS is offering postponements on federal tax deadlines for those who live or have businesses in the affected counties.WTMJ+1 Specifics include:
• Tax returns and payments that were originally due on or after August 9, 2025 and before February 2, 2026 are postponed to February 2, 2026. This covers many individual, corporate, estate, trust, partnership, S corporation, and other returns.
• Estimated tax payments due on or after that August date are postponed to the same February 2026 deadline.
• Other time sensitive actions (such as certain payroll/excise tax returns; some required filings) scheduled during that affected period also get this extension.
Disaster Unemployment Assistance
• The Wisconsin Department of Workforce Development (DWD) has made Disaster Unemployment Assistance (DUA) available for eligible individuals in these three counties.
• To qualify, one must be unemployed or self employed due to the storms/flooding, not eligible for regular unemployment insurance, and have had their income or place of work directly impacted (e.g. damage, inability to reach work).
• The period covered for unemployment assistance begins August 10, 2025. Applications must be submitted by November 10, 2025.
FEMA & Other Federal Aid
• FEMA’s Individual Assistance is available to residents who suffered home or property damage.
• The deadline to apply for FEMA Individual Assistance is November 12, 2025.
• The Small Business Administration (SBA) has disaster loan programs for homeowners, renters, and businesses to cover damage not sufficiently insured.
Banking / Financial Institution Relief
• The Federal Deposit Insurance Corporation (FDIC) is encouraging banks in the affected counties to work with affected customers (homeowners, businesses) to help them manage loans, adjust or alter payment terms, and otherwise provide flexibility.
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Who Qualifies & What You Should Do
To benefit from the relief, you generally must:
• Live or conduct business in Milwaukee, Washington, or Waukesha County.
• Be impacted by the disaster (damage, inability to work, physical property damage, etc.).
• In many cases, file for assistance or relief by the deadlines listed. Missing those may result in being ineligible.
Here are steps to take:
1. Document all damage: Take photos, save repair estimates, keep receipts.
2. Check that you are in the declared disaster area and confirm deadlines for the programs you want to apply for.
3. File necessary applications: FEMA (Individual Assistance), SBA loans if needed, DUA via state, IRS for extended deadlines.
4. When filing your 2024 tax returns, consider casualty loss deductions for damage not covered by insurance. Form 4684 is used in federal returns for casualty/theft losses.
5. If unsure, reach out to local county offices, the state Department of Revenue, or a tax professional. Also monitor IRS and FEMA official sites for updates.
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Deadlines You Shouldn’t Miss
Program / Relief Deadline
FEMA Individual Assistance / November 12, 2025
Disaster Unemployment Assistance (DWD) / November 10, 2025
SBA Physical Damage Loan Application / November 10, 2025
SBA Economic Injury Disaster Loan (EIDL) / June 11, 2026
IRS Filing/Payment Postponement (for deadlines falling Aug 9 – Feb 2) / Feb 2, 2026
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Things to Know / Caveats
• Extensions do not mean forgiveness: you still owe whatever taxes are owed; it’s mostly relief from penalties and due dates.
• Insurance may reduce what you can claim in terms of casualty losses. Only portions not covered by insurance are eligible for deduction.
• Not all action items are automatically granted—some require applying or contacting the IRS or FEMA.
• Relief provisions often cover federal taxes; state/local tax rules may differ, so check with Wisconsin DOR or local county offices.
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