Get your taxes done using TurboTax
To claim the disaster relief from Tropical Storm Harvey, you may have already filed Form 4684. How you report the grant, will depend on what was done for the tax year during the disaster.
If you have not already reported the full loss, then report the grant with the offsetting costs in TurboTax by following these steps:
- From inside TurboTax, in the search box, enter casualty loss.
- Select the Jump to link from the search results.
- Answer Yes to Casualties and Thefts.
- Fill out the next screen with description and date.
- The FEMA disaster code for Hurricane Harvey is DR-4332.
- Continue through the prompts.
- The grant will be considered Insurance Reimbursement.
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Complete the interview for the disaster relief.
If you have already reported the full loss, then consult the instructions for Form 4684 with how to report the grant received now.
You may need to amend(change) the prior year return.
Regarding reporting a claim for reimbursement, page 2:
If in the year of the casualty there is a claim for reimbursement with a reasonable prospect of recovery, the loss is not sustained until you know with reasonable certainty whether such reimbursement will be received.
If you aren't sure whether part of your casualty or theft loss will be reimbursed, don't deduct that part until the tax year when you become reasonably certain that it won't be reimbursed. This later tax year is when your loss is sustained.
If you are reimbursed for a loss you deducted in an earlier year, include the reimbursement in your income in the year you received it, but only to the extent the deduction reduced your tax in an earlier year.
Regarding Grants received, Page 5:
Grants and other payments you receive to help you after a casualty are considered reimbursements only if they must be used specifically to repair or replace your property. Such payments will reduce your casualty loss deduction.
If there are no conditions on how you have to use the money you receive, it isn't a reimbursement.
For more information, see: IRS: Help for victims of Hurricane Harvey.
