It is difficult to claim a casualty loss because you have to meet a tough threshhold. Only the amount of a casualty loss that is OVER 10% of your adjusted gross income can be counted toward your itemized deductions, and even then you must subtract $100 from that amount.
Individuals are required to claim their casualty and theft losses as an itemized deduction on Schedule A.
To enter casualty losses in your return, this done through the Casualty and Theft deduction. This deduction covers property that’s damaged as a result of a disaster, such as a storm, flood, fire, car accident, or similar event, and also covers stolen property. Property includes anything you own.
To enter this in TurboTax:
- Got to the "Federal Taxes" tab
- Click on "Deductions & Credit"
- Scroll down to "Other Deductions and Credits" and click on "show more" to the right of it
- Click "Start" next to "Casualties and Thefts" continue to follow the onscreen guide.
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