Yes, theoretically; but no actually.
To claim a tax deductible casualty loss you must not only subtract what the
insurance company paid, you can only deduct your losses that
exceed 10% of your AGI+$100. In addition, it is an itemized deduction. If you
usually take the standard deduction, you'll have to now find additional
itemized deductions to exceed the standard deduction. A taxpayer seldom has a net tax deductible casualty loss, in a car
accident, where insurance is involved.
In TurboTax, enter at:
Federal Taxes Tab (Personal
for H&B version)
Deductions & Credits
-I’ll choose what I work on button
-Scroll down to:
--Other deductions & Credits
---Casualty & theft
Or type- casualty
loss -in the search box
For more info, see:
http://www.irs.gov/pub/irs-pdf/i4684.pdf
