Affected taxpayers in a Presidential Disaster Area have the option of claiming disaster-related casualty losses on their federal income tax return. This will allow you to take the Casualty and Theft Deduction. This deduction covers property that’s damaged as a result of a disaster, such as a storm, flood, fire, car accident, or similar event, and also covers stolen property. Property includes anything you own.
When you report the damages in the TurboTax program, there will be a description box where you can enter the notation. (Please see screenshot below)
To report the damages in TurboTax Online:
- Sign into your Online account
- Click the orange button that says "Take me to my return."
- Go to Federal Taxes at the top.
- Then go to Deductions & Credits
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Scroll down to Other Deductions and Credits
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Select Start/Revist next to Casualties and Thefts
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Continue through the prompts until you reach the page that says Casualty and Theft Events
- You can then enter your "Disaster Area" notation in the box.