Look here for all disaster areas listed by the IRS:
https://www.irs.gov/newsroom/tax-relief-in-disaster-situations
I know it was declared a natural disaster but it was after the date on the page of Feb 2020 as it occurred in August 2020. Is the date a typo on TurboTax's side?
What are you referencing to with this "natural disaster in 2020 was after the listed date of Feb. 19, 2020" ? In what context ?
The question on TurboTax states- 'were you affected by a natural disaster in 2020- Select Yes only if you were affected by a federally declared natural disaster that was declared before Feb 19, 2020.'
We were affected by Hurricane Laura which was declared Aug. 28th 2020.
The Feb 19, 2020 date seems really early in the year to eliminate everything after that for qualification. I'm wondering if this is a typo.
I noticed that when I went through as well. The software program is not able to update sections until the federal government finalizes them. The disaster goes on Form 4684 and is expected to be completed by the IRS on 2/18/2021. Once that happens, the software can be updated.
I am sorry for what you went through! Check back later in February.
I checked no on this question as we were hit by a Tornado after February 19, 2020 and continued to file and complete my taxes.
So apparently I didn't get a chance to claim or file the disaster information.
What should I do?
Can I file this info next year or do I have to file an amendment?
Thanks!
Yes, I would file an amendment for this year to claim the disaster loss. I have checked this FEMA website and Hurricane Laura has been updated as a declared major disaster. You can now report this in Turbo Tax. To amend:
To amend your 2020 return:
Go to federal>deductions and credits>Other Deductions and Credits>show more
Disasters, theft, and other property loss or damage>start or revisit
[Edited 03-18-2021|12:17 PM PST]
@DaveF1006 Hi Dave, I noticed your input and I'm impressed by it.
I have a question about Natural Disaster report.
My family was affected by Iowa Derecho on August 10, 2020. In our backyard, two huge trees fell down, and retaining walls were damaged.
Since we just got tree professionals examine the situation, let alone the retaining wall, and the rebuild project will probably start July or August 2021. Till now, we still don't know how much the project will cost.
My question is: can we file 2020 tax return first, and then amend this issue after the project is done?
When we file before 5/17, do we need to mention this loss even though the cost hasn't not taken yet.
Thanks for your time!
@nongkangma Yes, you can amend your return when you know more. You have 3 years to amend. This year is particularly odd with 3 types of disasters and different ways of reporting.
As part of tax reform relief for those affected by natural disasters, you can now deduct your total loss (minus $500 and any amount covered by insurance) along with your usual Standard Deduction, whether you amend 2019 (see below) or file as usual for tax year 2020. This means you’ll be able to claim everything you lost over $500 without having to itemize deductions on your taxes.
See Topic No. 515 Casualty, Disaster, and Theft Losses | Internal Revenue Service (irs.gov)
@AmyC Hi Amy, somehow I missed your message.
Thank you so much for your detailed information. As for the amend, I called to IRS, and the answer is we can amend 2019 tax return, and for 2020 natural disaster, the report deadline is Oct. 15th.
Not sure if 3-year amend can be applied on the 2020 natural disaster report?
I appreciate your help!
@nongkangma The filing deadline for 2020 is October 15 but the amended deadline remains 3 years after original taxes were due. You can file an amended for the disaster. Filing an amended return for a disaster is common. You have two options at this point:
Due to the IRS being so far behind in processing and each return being so much to check, I would recommend waiting, if you think you will know by October 15. If you currently owe tax, but will not, once you have the final return prepared, you would not need to pay by May 17.
@AmyC Dear Amy, thank you so much for your information, and it makes me feel relieved.
Since I haven't got the loss number yet, may I just file 2021 tax without any record about it? I mean, do I need to mention the fact of loss somewhere in the tax return, and then file the amendment later when I have detailed number.
I appreciate your time,
Vivian
@nongkangma Yes, you can go ahead and file your 2020 tax return in 2021, if you feel the need to file it now. The processing takes a while this year so it could be months before any refund is processed.
Once your original return is accepted and the finances are settled, you can file an amended return. Amended returns can only be e-filed this year. Afterwards, they need to be mailed and that is a very long process, currently running nearly a year behind. If you have state tax, it will also need to be amended and only a handful of states e-file amended returns. Many states are also struggling with processing returns. Really weigh your options before deciding if you want/ need to file or can wait.
@AmyC Dear Amy, I'm still confused by this question.
The Derecho incurred in 2020, but my family's loss will be recovered in 2021 (not started yet at this point ).
Which year tax return should I report? 2020 or 2021 tax return?
I appreciate your great patience💗
The IRS has the answer as the year of the loss or the prior year. See Tax Topic 515 with links to pubs for even more help. We are all glad to help!