Yes, since it was all one incident you can total the amounts. Also, yes, anything you received from FEMA must be reported as reimbursements or insurance.
Here is how the Casualty Loss deduction works: Individuals
are required to claim their casualty and theft losses as an itemized deduction
on Form 1040, Schedule A Itemized Deductions.
- For property held by you for
personal use, Subtracted any salvage value (zero for
theft) and any insurance or other reimbursement from the
loss amount.
- Then, subtract $100
from each casualty or theft event that occurred during the
year.
- Then, take that
amount and subtract 10% of your adjusted gross income from that total
to calculate your allowable casualty and theft losses for the year.
- That's the amount that goes on
your Schedule A Itemized Deductions.
If your property is personal-use property or is not completely destroyed,
the amount of your casualty loss is the lesser of:
- The adjusted basis of your
property, or
- The decrease in fair market
value of your property as a result of the casualty
More details can be found at this link http://www.irs.gov/taxtopics/tc515.html
That said, the amount would have to be pretty large for you to be able
benefit. Also, you must file Schedule A as I stated above. But, if
you want to give it a shot in the Casualty and Theft section of the software,
it wouldn't hurt.
How to enter it into TurboTax: While
inside the software and working on your return, type casualty loss in
the Search at the top of the screen (you may see a magnifying glass there).
There will be a popup that says Jump to casualty loss.
Select that to get to the general area.
