Can you deduct your hurricane deductible?

[MinhT1]

If the hurricane is a federally declared disaster, you can claim the damage not covered by insurance (your deductible) as a disaster loss. This deduction is an itemized deduction on Schedule A.

The first $100 of loss is not tax-deductible, but the remainder of the loss is tax-deductible to the extent that it exceeds 10% of your adjusted gross income.

Please read this TurboTax blog for more information.

[landry1364]

Thank you. I'm asking because actually in April I had to pay a deductible for insurance of 2,500 and then again, my hurricane deductible of 3,500 in September. How would I put this in and what do I classify it as? 

[Vanessa A]

If you were in a federally declared disaster zone then you would take the following steps to enter your deductibles. 

• Federal
• Deductions and Credits
• Show More next to Other Deductions
• Start next to Casualties and Thefts
• Enter the Description, Date and Property Type
• When you select Personal property, you will need to select the special tax treatment.  
• When you click next you will need to enter the FEMA disaster code.  
• Continue through the entries

Since your deductibles totaled $6,000, you would only be able take a deduction if your income was $60,000 or less and only for the amount that exceeds 10% of your income.  Ex.  If your income is $50,000, then you would only be able to take a $1,000 deduction towards your Itemized Deductions. ($6,000-(10% x $50,000)).  The other $5,000 is not deductible. 

[Mike9241]

@landry1364 are these insurance premiums or did you actually suffer a qualified loss, premiums for these types of losses on nonbusiness/investment property are not deductible.  business insurance premiums are deducted on the business.  normally you don't directly pay the deductible the insurance company takes it off the proceeds 

[landry1364]

They are insurance premiums I paid out of pocket (my deductible). However, I get insurance but, what I had to get replaced wasn't included in the insurance estimate and I had to pay out of pocket because it was a serious issue I needed to have replaced (well/softener). 

[landry1364]

Hello, so basically it would have to go in as itemizing. It won't work with taking the standard deduction. I'm unsure what to even put. It was a federally declared (hurricane Ian). However, I didn't see the special tax treatment. What would I exactly put? 

[Vanessa A]

Insurance premiums are not the same as an insurance deductible.  Premiums are the fees you pay to be insured.  Premiums are NOT deductible.  

Deductibles are the difference between what your loss is and what the insurance covers.  Usually this is stated when you open the policy.  If you have a $50,000 claim, we will pay you all but $2,500 (if that is the deductible you choose)  That $2,500 IS deductible when you are in a federally declared disaster area.  

Whatever your actual losses were from the federally declared disaster area are the only thing you can deduct.  

The special treatment is that you can actually deduct the losses as an itemized expense, whereas if you lived in an area that just had a flood and was not declared a federal disaster area, you would not be able to take any deduction for the losses. 

Yes, to claim any of these expenses you must itemize.  As I mentioned before, you can only deduct the portion of the loss that is in excess of 10% of your AGI.  

If your total itemized expenses do not exceed your total standard deduction, you will not get any type of tax benefit from the casualty losses. 

Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.