Question

Why is Form 4684 not updated for the Federal Disaster Tax Relief Act of 2023 (H.R. 5863)?

Forum|Forum|1 year ago
February 28, 2025
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It is updated. The Federal Disaster Tax Relief Act of 2023 extended the special rules and return procedures for personal casualty losses attributable to certain major federal disasters declared between February 26, 2021, and February 10, 2025. Qualified disaster losses can be claimed on Form 4684, Casualties and Thefts. For more information, see Qualified disaster loss.

If you suffered a qualified disaster loss, you are eligible to claim a casualty loss deduction, to elect to claim the loss in the preceding tax year, and to deduct the loss without itemizing other deductions on Schedule A (Form 1040).

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Q

QDI2023Author

But the questions that I'm being asked in Turbotax are related to the previous way Form 4684 was completed.

DawnC

The Federal Disaster Tax Relief Act of 2023 makes disaster relief payments tax-free. If you received disaster relief payments, you don't need to enter that income; the link above has more info.

Generally, if had a loss is caused by a federally declared disaster, you may deduct personal casualty losses relating to your home, household items, and vehicles on your federal income tax return. For tax years 2018 through 2025, personal casualty losses are otherwise not deductible.

Federal casualty losses, disaster losses and qualified disaster losses are three categories of casualty losses that refer to federally declared disasters. The requirements for each loss vary. For more information, see Pub 547, Casualties, Disasters, and Thefts

Make sure you are in the right place. Here's how to enter your qualified casualty loss in TurboTax:

Open or continue your return.
Navigate to the casualty loss section:
- TurboTax Online/Mobile: Go to casualty loss.
- TurboTax Desktop: Search for casualty loss and select the Jump to link.
Select Yes on the Did you have anything damaged or stolen in 2024? screen.
Answer the questions about your event, entering your Description in the following format: State, Disaster (for example, California, Wildfires).

When you complete the event and reach the Property Summary screen, you can enter any additional property losses by selecting Add a Property.

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