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What if I had a water damage and got a check from the insurance company?
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What if I had a water damage and got a check from the insurance company?
When you lose an item due to an accident, theft, or act of nature, you may have a tax deduction for the value of the property that is not covered by your insurance. The tax deduction is called a "casualty loss" deduction. The lost item can be business property, investment property, or personal property. Deductible casualty losses can result from a variety of causes such as car accidents, earthquakes, floods, fire, hurricanes, or vandalism.
You will need to file a Form 4684 Casualties and Thefts to claim a casualty loss.
To enter your casualty loss 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
Enter your casualty loss information in the program, and it will calculate the deduction you are entitled to. If the damage is entirely covered by the insurance reimbursement, there might not be any deductions allowed.
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What if I had a water damage and got a check from the insurance company?
Although my insurance paid for my water damage in my basement, how do I claim the deductible that I paid.
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What if I had a water damage and got a check from the insurance company?
You may deduct casualty and theft losses relating to your home, household items, and vehicles on your federal income tax return if the loss is caused by a federally declared disaster declared by the President.
If you qualify, to enter your out of pocket expenses not covered by insurance:
- From the Deductions & Credits menu, expand the menu for Other Deductions & Credits
- Click Start/Revisit next to Disasters, theft, and other property loss or damage
- Enter the information on the screens that follow
Casualty, Disaster, & Theft Losses
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