Can you amend your disaster loss?

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Wilford Schultz asked a question: Can you amend your disaster loss?
Asked By: Wilford Schultz
Date created: Sat, Jan 2, 2021 5:55 PM
Date updated: Tue, Jul 26, 2022 3:23 PM

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Top best answers to the question «Can you amend your disaster loss»

If your loss is part of a presidentially declared disaster, you can deduct the loss on your prior-year return. If you've already filed your prior-year return, you can file an amended return to claim the deduction. Claiming a qualifying disaster loss on your prior-year return: Could result in a lower tax for that year.

  • If you're the victim of a hurricane, wildfire or other natural disaster, you might be able to file an amended return to claim a casualty loss deduction for the tax year before the disaster. Alternatively, you can claim the loss in the year of the disaster: Pick whichever year is more favorable to you.

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If you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to treat the casualty loss as having occurred in the year immediately preceding the tax year in which you sustained the disaster loss, and you can deduct the loss on your return or amended return for that preceding tax year.

How do I amend 2017 Federal Tax Return to include a 2018 Earthquake FEMA Federally Declared Disaster Loss? You can amend your 2017 to take the loss. In that case no 4684 for that should be in your 2018 return. 4684 Section D is not supported in Step-by-Step.

Generally casualty losses are deductible in the year the casualty occurs, however if you suffer casualty loss due to a federally declared disaster that occurs in an area requiring public or individual assistance, then you can treat the loss as having occurred in the year immediately preceding the tax year in which it happened, and you can deduct the loss on your tax return or amended tax return for the year before.

So, if you incur a loss in a federal disaster area in the second half of this year, you might amend your 2019 return to obtain faster tax relief. (Or, if you haven’t yet filed your federal income tax return for 2019, you could report the loss on your original 2019 tax return.)

For example, if in 2011 you suffered a casualty loss due to a presidentially declared disaster, you can amend your 2010 return up until the current April filing due date (the 17th this year) to...

I am in the declared disaster area. You can file an amended return within 3 years after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later.

If a taxpayer properly claimed a casualty loss deduction on an original return and in a later year receives reimbursement for the loss, the taxpayer does not amend the original return but reports the amount of the reimbursement in gross income in the tax year it is received, to the extent the casualty loss deduction reduced the taxpayer’s income tax in the tax year in which the taxpayer reported the casualty loss deduction.

Don't worry: you can always amend your return (or otherwise report the adjustment on next year's return) if it turns out that you received more or less than expected. Some property may not be...

If you are in a disaster area, then you will probably want to amend your prior year's return to claim this year's loss as if it had occurred last year. Amending your return is likely to result in a tax refund, which can be in your hands in a matter of weeks.

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