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Was at fault in accident, and damage was $5k beyond my insurance. I set up payment with other driver's insurance company to cover the $5k; can I write off these payments?

Forum|Forum|6 years ago
June 7, 2019
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Not much to add - payments are about $200/mo., so write-off could be somewhat significant. Thanks!

Best answer by Texas Roger

This would be a casualty loss. The hurdle to actually get a tax deduction is somewhat high. You can only deduct the amount of the loss less $100 in excess of 10% of your AGI. That amount is added to other itemized deductions. If the total of all your itemized deductions is more than the standard deduction, you may get a tax benefit.

T

Texas RogerAnswer

Employee

This would be a casualty loss. The hurdle to actually get a tax deduction is somewhat high. You can only deduct the amount of the loss less $100 in excess of 10% of your AGI. That amount is added to other itemized deductions. If the total of all your itemized deductions is more than the standard deduction, you may get a tax benefit.