I have a natural disaster loss which was determined using Form 4684. I would normally be using standard deduction, however there is an exception noted in IRS 1040 instructions Exception 4—Increased standard deduction for net qualified disaster loss. If you had a net qualified disaster loss and you elect to increase your standard deduction by the amount of your net qualified disaster loss, use Schedule A to figure your standard deduction. Qualified disaster loss refers to losses arising from certain disasters occurring in 2016 and subsequent years. See the Instructions for Form 4684 and Schedule A, line 16, for more information.
Going to the instructions for Schedule A line 16 -1. List the amount from Form 4684, line 15, on the dotted line next to line 16 as "Net Qualified Disaster Loss," and attach Form 4684.
2. List your standard deduction amount on the dotted line next to line 16 as "Standard Deduction Claimed With Qualified Disaster Loss."
3. Combine the two amounts on line 16 and enter on Form 1040 or 1040-SR, line 12
I see that instruction 1 is captured on the TTax form Sch A line 16. However, Instruction 2 is not captured on TTax form Sch A line 16 yet instruction 3 is carried out on TTax form 1040 line 12. Will TTax be updating Sch A line 16 to include instruction 2? It took time to figure out why the TTax form Sch A line 17 did not match line 12 on Form 1040. Not until you go through the IRS web site do you find what I believe is the correct answer.
