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Hurricane Ian

Forum|Forum|1 year ago
January 7, 2025
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On my 2022 tax return, I marked Hurricane Ian as a "qualified disaster", but not as a "qualified MAJOR disaster." Due to the Steube bill passing, is it now a "qualified major" disaster?

If not, is there anything I can gain by filing an amended return?

Best answer by Vanessa A

It depends on your actual situation. However, if you had expenses that were not allowed when Hurricane Ian was considered a Qualified disaster for tax purposes and now would be allowed with the qualification as a Major disaster, you may have a gain by filing an amended return if after you claimed all other expenses and deductions, you still had taxable income.

With the change, your losses would be added to your standard deduction to arrive at your taxable income. So, if you were single, had income of $100,000, and a $12,950 standard deduction in 2022 and qualified Major disaster losses of $90,000, you would no longer have taxable income and would get any taxes back you paid in for that year that was not already refunded.

If however, you had income of $25,000 and were married filing jointly, you would have had a standard deduction of $25,900, so you would already have no taxable income. In this situation, you would not gain anything by filing an amended return.

The losses are a deduction from income, not a tax credit.

If you are unsure, you can go in and amend your return to see how it impacts you.

Casualty and Losses Form 4684 Instructions

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Vanessa AAnswer

It depends on your actual situation. However, if you had expenses that were not allowed when Hurricane Ian was considered a Qualified disaster for tax purposes and now would be allowed with the qualification as a Major disaster, you may have a gain by filing an amended return if after you claimed all other expenses and deductions, you still had taxable income.

With the change, your losses would be added to your standard deduction to arrive at your taxable income. So, if you were single, had income of $100,000, and a $12,950 standard deduction in 2022 and qualified Major disaster losses of $90,000, you would no longer have taxable income and would get any taxes back you paid in for that year that was not already refunded.

If however, you had income of $25,000 and were married filing jointly, you would have had a standard deduction of $25,900, so you would already have no taxable income. In this situation, you would not gain anything by filing an amended return.

The losses are a deduction from income, not a tax credit.

If you are unsure, you can go in and amend your return to see how it impacts you.

Casualty and Losses Form 4684 Instructions

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BobRayAuthor

Thanks, that's very helpful.

If I'm understanding you, Ian is now a qualified "Major" disaster. Is that correct?

DaveF1006

It depends. I would suggest filing the 2022 Turbo Tax Amendment and declare it a major disaster. The Fema code is DR-4673-FL, which is a code that is used for major disasters. Prepare the amendment to see if the change has taken place and let us know the outcome.

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