This article will assist you with entering personal casualty loss deductions in Intuit ProConnect.
Beginning January 2018–December 2025, personal casualty losses are nondeductible unless attributable to a federally declared disaster.
How the tax reform affects personal casualty losses
If your client suffers a personal casualty loss from a disaster declared by the president under Section 401 of the Stafford Disaster Relief and Emergency Assistance Act, your client can claim a personal casualty loss as an itemized deduction, subject to the $100-per-casualty and 10%--of-adjusted-gross-income (AGI) limitations.
If your client has personal casualty gains, you can still offset personal casualty losses against those gains, even if their losses aren't considered a federally declared disaster.
Qualifying for personal casualty losses under the tax reform
Follow these steps to qualify for personal casualty losses under these guidelines:
- Go to the Input Return tab.
- From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
- Select Schedule D, 4797, etc.
- Click the blue Details button to expand the input screen.
- From the top of the screen, select 4684, 6781, 8824, 4255.
- Locate the Casualties and Thefts (4684) section.
- Enter a 1 in 1=personal, 2=business, 3=income, 4=employee.
- Select 6 = Federally declared disaster, occured in 2018, 2019, 2020, 0r 2021 from the Disaster loss (Click on arrow to select from list) dropdown menu.