To deduct a casualty or theft loss, you must itemize your deductions on Schedule A. The amount of your deduction is limited to the amount of the loss that exceeds 10% of your Adjusted Gross Income after a $100 deductible
As an example if you had a loss of $5000, and your Adjusted Gross Income is $40,000, your tax benefit would be as follows:
After deducting $100, you are left with $4,900 which is $900 above 10% Income of your Adjusted Gross Income of $4,000.
Your deduction would therefore be $900.
To report a casualty loss:
· Type in casualty losss in the search box, top right of your screen, click the magnifying
· Click the jump to casualty loss link in the search results
· Follow to prompts and online instructions