How do I handle insurance payments for flood damage? Is it income or adjusted by the damage estimate?

ta2016 — Mon, 03 Jun 2019 20:19:53 GMT

If you are claiming a Casualty Loss on your tax return fo...

TomD8 — Mon, 03 Jun 2019 20:19:55 GMT

If you are claiming a Casualty Loss on your tax return for the flood damage, you must reduce the amount of your claim by the amount reimbursed by insurance.

Insurance reimbursement is normally not considered income. However, if you later receive more reimbursement than you expected after you claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. However, if any part of the original deduction didn't reduce your tax for the earlier year, don't include that part of the reimbursement in your income. You don't refigure your tax for the year you claimed the deduction.

https://www.irs.gov/publications/p17/ch25.html#en_US_2016_publink1000173595

topic If you are claiming a Casualty Loss on your tax return fo... in Deductions & credits

How do I handle insurance payments for flood damage? Is it income or adjusted by the damage estimate?

If you are claiming a Casualty Loss on your tax return fo...