To qualify for the casualty loss and take a tax deduction for the value of the property that is not covered by your insurance:
- You must have items that are lost or damaged as a direct result of a natural disaster, and
- You must live in a federally declared disaster area.
- You must submit a Federal Emergency Management Agency federally declared disaster code.
The lost or damaged items may be personal property, business property, or investment property.
Follow these steps to report the loss in TurboTax Online:
- Down the left side of the screen, select Federal.
- Down the left side of the screen, select Deductions & Credits.
- Click the down arrow to the right of Other Deductions and Credits.
- Click to the right of Disasters, theft, and other property loss or damage.
- At the screen Did you have anything damaged or stolen during a recent Federal disaster, select Yes.
Make sure that the date of the loss falls within the dates of the emergency declaration or disaster declaration.
See this TurboTax Help.