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posted Feb 24, 2021 9:24:22 AM

Victims of TX winter storm - If you review if anything was damaged it only says for "2020". Per IRS website you can deduct uninsured damage in 2021 too. Is a fix needed?

IRS website "Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year), or the return for the prior year. This means that taxpayers can, if they choose, claim these losses on the 2020 return they are filling out this tax season."

Does Turbo tax need to update their software?

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1 Replies
Level 10
Feb 24, 2021 5:12:36 PM

In TurboTax you will follow these steps to report the 2021 storm damage on your 2020 return

 

Here are the steps to follow:

 

  1. Federal
  2. Deductions and Credits
  3. See All Tax Breaks
  4. Find the one with Disaster, Casualty, Thefts - it is worded a little different on different versions of the software
  5. Add your casualty or theft event
  6. Put the description - Texas Winter Storm Damage
  7. Personal Property
  8. Federally declared MAJOR disaster
  9. FEMA disaster code EM-3554-TX
  10. Fill in the rest of the screens

 

This is an itemized deduction and the full amount of damage (less the first $500) will go to itemized deductions on Schedule A.