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March 31, 2025
Question

casualty loss turbotax entries do not match 4684 form by category?

  • March 31, 2025
  • 1 reply
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Form 4684, casualty losses describe each loss by area in home or asset type.  But TurboTax asks you to enter EACH and every item.  Seems easier to use the worksheet provided by IRS.  Am I correct?

    1 reply

    LindaS5247
    March 31, 2025

    If you use the worksheet provided by the IRS you will not be able to e-file your tax return in TurboTax.  Did you review your "Casualty and Theft Worksheet" to see if you can reconcile  your entries to the actual Form 4684? Does TurboTax come up with a different total for your casualty loss? 

     

    The deduction you can claim is based on property that was destroyed, you will need to calculate the casualty loss by subtracting the salvage value from the adjusted basis of the asset and then subtracting any insurance proceeds from the result. 

     

    The amount of your loss is generally the decrease in fair market value of the property, or your adjusted basis in the property, whichever is less. 

     

    The decrease in market value is the difference between what the property was worth before and after a casualty. The adjusted basis is usually your original cost plus the cost of any improvements you’ve made.

     

    If you are using TurboTax Desktop, you can view this worksheet by doing the following:

    1. Click on "Forms" in the upper right corner of your TurboTax screen to switch to "Forms Mode"
    2. In your left panel scroll down to your "Casualty and Theft Worksheet" to review it.
    3. The total casualty loss flows to Schedule A, line 15 to be included in your itemized deductions (If it is not for a Federally Declared Disaster)

     

    Click here for Instructions to Form 4564.

     

    Click here for About Casualty Deduction for Federal Income Tax

     

    Click here for Topic no. 515, Casualty, disaster, and theft losses



     

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    jimSLVAuthor
    April 3, 2025

    I'll give it a try.  Thanks for the advice!!!

    jim