Form 4684 Problem with Qualified Disaster Losses
I am working on my real disaster loss for tax year 2022. My FEMA disaster code is DR-4683 affecting California. I carefully read related IRS papers such as Publication 547 and Form 4684 Instructions. My understanding is my disaster is not a "Qualified Disaster", and I do not believe my loss should be reported as Qualified Disaster Loss, but rather just Disaster Loss. The two are treated differently, with Qualified Disaster Loss subject to a $500 deduction but not subject to 10% AGI deduction, versus Disaster Loss subject to a $100 deduction and also subject to 10% AGI deduction. I entered my numbers in Form 4684 TurboTax 2022 (Windows PC installed version), and asked TT to generate the tax return. I see my loss is treated as Qualified Disaster Loss, even though I correctly entered my FEMA code (DR-4683). This does not look like a software bug but a problem in interpreting the tax code. I hope the brainpower in this great community can help me understand or establish the problem.
