Yes, you may be able to deduct the tree and stump removal expenses on your federal tax return if your area was declared a federal disaster area by FEMA.
Important Note:
When you have items that are lost or damaged as a direct result of a natural disaster, and you live in a federally declared disaster area, you may be able to take a tax deduction for the value of the property that's not covered by your insurance. As also noted by @Mike9241
Here’s how it works:
- Casualty Loss Deduction: if your area was declared a federal disaster area, you can claim a casualty loss deduction for the expenses related to the tree and stump removal. This applies even if there was no damage to real or personal property, as long as the removal was necessary due to the disaster
Next Steps:
1. Check if the Tornado was Declared a Disaster Area:
2. Enter Loss on TurboTax:
- To enter your tree and stump removal expenses as a casualty loss in TurboTax, follow the instructions provided on TurboTax's support page.
