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posted Apr 14, 2025 3:19:01 PM

Can I claim additional living expenses due to a federal disaster? I couldn't move back into my apartment (not inhabitable) and had to rent a car because it was totaled.

Didn't receive any insurance or compensation. Had to pay to live somewhere else and pay for another mode of transportation. IRS has this listed under category: Losses. A temporary increase in your living expenses is the difference between the actual living expenses you and your family incurred during the period you couldn’t use your home and your normal living expenses for that period. Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. Generally, these expenses include the amounts you pay for the following. • Renting suitable housing. • Transportation. • Food. • Utilities. • Miscellaneous services. Normal living expenses consist of these same expenses that you would have incurred but didn’t because of the casualty or the threat of one.

0 1 2014
1 Replies
Expert Alumni
Apr 14, 2025 3:32:24 PM

Those additional living expenses should be submitted to your insurance company or FEMA. Publication 547 page 12 has an example of the extra expenses and insurance reimbursement to determine the taxable portion. If you did not receive insurance, you would not list them on your taxes.