We live in Texas. During 2023, we had significant water damage to our home from an upstairs toilet breakage, for which we were given money from our Homeowner's Insurance to pay contractor's to repair our home. Of course, the insurance didn't quite cover all of our expenses. Anyway, we ended up paying a substantial amount of State and Local Taxes to these contractors, and we are wondering if we can deduct the State and Local Taxes we paid to the contractors from our Federal Income Taxes, even if the source of some of the payments was from our insurance company? Thank you for your kind attention.
