If you filed Federal Form 4684, Casualties and Thefts, and your loss was related to a federally declared hurricane disaster, Alabama may provide special tax treatment for qualifying disaster losses.
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Alabama State Return > Basic Information > Are you filing Federal Form 4684 and are a Qualified Hurricane Victim?
What Is Federal Form 4684?
Federal Form 4684 is used to report casualty and theft losses.
Examples of casualty losses may include damage caused by:
- Hurricanes
- Tornadoes
- Floods
- Fires
- Other federally declared disasters
Taxpayers who claim a casualty loss on their federal return may be required to complete Form 4684.
Who Is a Qualified Hurricane Victim?
A qualified hurricane victim is generally a taxpayer who sustained a casualty loss in an area designated as a federal disaster area due to a qualifying hurricane.
Special tax provisions may apply when a loss is connected to a federally declared hurricane disaster.
When Should I Answer "Yes"?
Answer Yes if:
- You filed Federal Form 4684; and
- Your casualty loss was related to a qualifying hurricane disaster; and
- You are eligible for any special hurricane-related tax treatment.
When Should I Answer "No"?
Answer No if:
- You did not file Federal Form 4684.
- Your casualty loss was not related to a qualifying hurricane disaster.
- You are not claiming any hurricane-related disaster relief.
What Information May Be Needed?
You may need information from:
- Federal Form 4684.
- Insurance claims and reimbursements.
- Disaster assistance records.
- Property damage documentation.
- Repair estimates and receipts.
- Other records supporting the casualty loss.
How Does This Affect My Alabama Return?
A qualifying hurricane loss may:
- Affect Alabama taxable income.
- Impact casualty loss calculations.
- Result in special disaster-related tax treatment.
- Change the amount of tax owed or refunded.
The actual impact depends on the loss reported on Federal Form 4684 and the applicable Alabama disaster relief provisions.
What Documentation Should I Keep?
Keep copies of:
- Federal Form 4684.
- Insurance claim documentation.
- Receipts and repair estimates.
- Property damage records.
- Federal disaster declarations.
- Any other documents supporting the casualty loss.
These records should be retained with your tax records in case additional verification is required.
Important Information
- Answering this question does not automatically qualify you for hurricane-related tax relief.
- The casualty loss must generally be associated with a qualifying hurricane disaster.
- Supporting documentation may be required to substantiate the loss.
- Keep all records related to the casualty loss and any insurance reimbursements received.
- The program uses this information to determine whether special Alabama disaster provisions may apply to your return.
Additional Information
If you are unsure whether your casualty loss qualifies as a hurricane-related disaster loss, review the information reported on Federal Form 4684 and any disaster declaration notices associated with the event before completing this section.