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posted Mar 30, 2022 11:09:15 PM

Can I claim damage reimbursement for Hurricane Ida?

I had repairs to my home and garage from Hurricane Ida.  I filed my taxes already so I would have to amend my return but can that be reported to increase my refund?

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2 Replies
Level 15
Mar 31, 2022 12:11:46 AM

you need to complete form 4684 and amend either 2021 or 2020. Regardless of what year you need to be able to itemize or have itemized your deductions

  • For details, see Form 4684, Casualties and Thefts and its Instructions. Affected taxpayers claiming the disaster loss on a 2020 or 2021 return should put the Disaster Designation, " Louisiana - Hurricane Ida " in bold letters at the top of the form. Be sure to include the disaster declaration number, FEMA 4611-DR, on any return.
  • Taxpayers have the option to claim the casualty loss deduction on their federal income tax return in the year of the loss or the year preceding the loss by amending your previous tax return. The election to deduct 2021 disaster losses on your 2020 tax return must be made by October 17, 2022, for individual calendar year taxpayers. The main reason you would want to claim the loss in the preceding year is if it results in a greater tax benefit than the tax benefit you’d receive by claiming the loss in the disaster year.

https://www.irs.gov/pub/irs-pdf/f4684.pdf 

https://www.irs.gov/pub/irs-pdf/i4684.pdf 

Level 15
Mar 31, 2022 5:33:34 AM

Just to add a bit to Mike9241’s comment, if you’ve been reimbursed for damages you’ve previously claimed for a disaster loss reported your original return, this normally won’t increase your refund when amending.

According to https://www.irs.gov/pub/irs-pdf/i4684.pdf

To determine the amount to deduct for a disaster loss, you must take into account as reimbursements any benefits you received or which you have a reasonable possibility of receiving from federal or state programs to restore your property.  

This means the reimbursement will lessen the amount of loss you claim.

That said, you need to amend your return to report any reimbursement you received to correctly state your losses.  

Please see the 2021 Instructions for Form 4684 and Publication 584-B (Rev. October 2017) for more information.