LindaS5247
Expert Alumni

Deductions & credits

If you have a qualified disaster loss (Federally declared disaster) you may elect to deduct the loss without itemizing your deductions.

 

Your net casualty loss doesn't need to exceed 10% of your adjusted gross income to qualify for the deduction, but you would reduce each casualty loss by $500 after any salvage value and any other reimbursement.

 

When you entered your casualty loss in TurboTax did you indicate it qualified for federally declared disaster? Did you have a FEMA disaster code for your entry?

 

If your deductions, including your loss deduction, are more than your income, you may have a net operating loss (NOL). You don't have to be in business to have an NOL from a casualty. For more information, refer to Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts.


 

Your TurboTax screens will look something like this:

 

 

 

 

 

 

 

Click here for Topic no. 515, Casualty, disaster, and theft losses

 

Click here for About Casualty Deduction for Federal Income Tax


Click here for Uncle Sam to the Rescue


 


 

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