No. At least, not exactly. A taxpayer seldom has a net tax deductible casualty loss, in a car accident, where insurance is involved. Your loss is the fair market ("blue book") value of the car on the date of the accident.
To claim a tax deductible casualty loss you must not only subtract what the insurance company paid, you can only deduct your losses that exceed 10% of your AGI+$100. In addition, it is an itemized deduction. If you usually take the standard deduction, you'll have to now find additional itemized deductions to exceed the standard deduction.
In TurboTax, enter at:
Federal Taxes Tab
Deductions & Credits
-Scroll down to:
--Other deductions & Credits
---Casualty & theft
Or type- casualty loss -in the search box
For more info, see:
http://www.irs.gov/pub/irs-pdf/i4684.pdf
No. At least, not exactly. A taxpayer seldom has a net tax deductible casualty loss, in a car accident, where insurance is involved. Your loss is the fair market ("blue book") value of the car on the date of the accident.
To claim a tax deductible casualty loss you must not only subtract what the insurance company paid, you can only deduct your losses that exceed 10% of your AGI+$100. In addition, it is an itemized deduction. If you usually take the standard deduction, you'll have to now find additional itemized deductions to exceed the standard deduction.
In TurboTax, enter at:
Federal Taxes Tab
Deductions & Credits
-Scroll down to:
--Other deductions & Credits
---Casualty & theft
Or type- casualty loss -in the search box
For more info, see:
http://www.irs.gov/pub/irs-pdf/i4684.pdf