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March 31, 2025
Question

Where on TurboTax do I indicate that I live in a federal disaster area?

  • March 31, 2025
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March 31, 2025

There are some tax benefits available when you live in a disaster area.  When you are claiming the benefits, indicate that you lived in a disaster area.

 

For example, if you took out money from a retirement account, you can take distributions of up to $22,000 from their qualified retirement plans. They can pay the tax over a three-year period and are exempt from the usual 10% penalty on early distributions.  You'd check the box I took out this money due to a qualified disaster after entering your 1099-R.

 

If you are claiming a casualty loss, after beginning Disasters, theft, and other property loss or damage, you'll be asked f your loss was due to a federally declared disaster.  You'll also need to enter the FEMA disaster code, later in the interview.

 

Here's some information you may find helpful: Tax Credits for Those Affected by Natural Disasters