We had some property stolen last Oct and we were reimbursed by our insurance company. Do we need to list this as income?

[LinaJ2018 · Accepted solution]

If your insurance reimbursement for the lost property is greater than the cost, you may generate a capital gain as your income.  You are advised to file a Form 4684 "Casualties and Thefts" to claim a casualty loss and if there is a gain generated, the program will create a Schedule D with the capital gain and finalize your Form 1040 to file.

To enter your casualty loss  and possible capital gain in TurboTax online program, go to:

• Sign in to your account and select Pick up where you left off
• At the upper right corner, in the search box, type in casualty loss, then Enter
• Select Jump to casualty loss
• On-screen, Stolen or Damaged Items, answer Yes to the question to continue