Search Help Topics:

You may be able to deduct part or all of each loss caused by theft, vandalism, fire, storm, or similar causes; car, boat, and other accidents; and corrosive drywall. You may also be able to deduct money you had in a financial institution but lost because of the insolvency or bankruptcy of the institution.

You can deduct personal casualty or theft losses only to the extent that:

  • The amount of each separate casualty or theft loss is more than $100, and
  • The total amount of all losses during the year (reduced by the $100 limit discussed in (1) above) is more than 10% of the amount on Form 1040, Line 38.

The loss must be reduced by any salvage value and by any insurance or other reimbursement you receive or expect to receive. 

IRS Form 4684 Casualties and Thefts is used to figure the amount of your loss to enter on Schedule A, line 20. To review or modify the Form 4684 entries in your TaxACT return:

  1. From within your TaxACT return (Online or Desktop) click the Federal Q&A tab
  2. Click Itemized or Standard Deductions to expand the category, and then click Casualty or theft losses
  3. Click Yes and the program will proceed with the interview questions for you to enter or review the appropriate information

TaxACT will use the higher of your itemized deductions or the standard deduction for your filing status to maximize your tax benefit. If you do not itemize deductions, you cannot deduct casualty and theft losses and Form 4684 will not print with your return. However, you can separately print the form to review the calculations.

See the IRS Instructions for Form 4684 for additional information. For certain exceptions and lists of deductible and nondeductible losses, see IRS Publication 547

Was this helpful to you?