If you lived in a federally declared disaster area during 2025 and experienced casualties or losses, you may be eligible to claim a casualty loss deduction on your federal tax return.
Who Qualifies?
You may qualify if:
- Your loss was caused by a federally declared disaster (as designated by FEMA)
- The loss involved personal-use property such as your home, vehicle, or household items
- The loss was not reimbursed by insurance or other sources
What Losses Are Deductible?
- Damage or destruction caused by events such as floods, hurricanes, wildfires, tornadoes, or earthquakes
- Losses must be sudden, unexpected, or unusual
- Normal wear and tear or gradual deterioration is not deductible
Special Rules for Qualified Disaster Losses:
- For tax years 2018 through 2025, personal casualty losses are deductible only if attributable to a federally declared disaster
- Qualified disaster losses are not subject to the 10% AGI reduction, and the $100 per casualty floor is increased to $500
How to Claim the Deduction:
- Use Form 4684, Casualties and Thefts
- Report the deduction on Schedule A (Form 1040) under Itemized Deductions
- You may elect to claim the loss in the prior tax year to potentially increase your refund
Program Entry Path:
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Federal
- Deductions → Select my forms
- Itemized Deductions
- Less Common Deductions
- Casualties and Losses