How do you force Sched A to add the Standard Deduction to a casualty loss (Hurricane Ian) transferred from 4684?

Forum|Forum|3 years ago
April 3, 2023
2 replies
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ProSeries Professional

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Best answer by TaxGuyBill

I think the Instructions for the 4684 are confusing, and certainly not clear. It doesn't specifically state how to claim a non-qualified federal disaster (such as the third most expensive Hurricane ever - Ian). I figure that means that the loss is reported on Sch A along with any other itemized deductions. If you don't itemize and just take the Standard Deduction, it appears that your loss becomes moot. Annoying to many of the victims.

I agree. But unless Congress changes things, it seems like they are stuck with Schedule A, and can't use the Standard Deduction on top of the losses.

clr600

Level 7

The loss will be added to the sch a and if it exceeds the standard deduction it use that amount if not then the standard deduction will be used.

T

TomWAuthor

Level 3

BUT, the Shed A itemized deductions are LESS than the standard deduction. How do you force Sched A to use the higher amount instead of the itemized amount when combined with the loss?

Skylane

Intuit Community Champion

Edit…Sorry, didn’t see it…. https://www.irs.gov/pub/irs-pdf/i4684.pdf did you follow the instructions on page 3?I’ll look for a workaround

If at first you don’t succeed…..find a workaround

T

TaxGuyBill

Level 15

@TomW wrote:
How do you force Sched A to add the Standard Deduction to a casualty loss (Hurricane Ian) transferred from 4684?

Did Congress change the law in the last few weeks about that?

If not, Hurricane Ian does not qualify for that provision. It is not a "qualified" disaster for purposes of adding the loss to the Standard Deduction.

T

TomWAuthor

Level 3

Huricane is a Federally designated disaster. The disaster code from FEMA is DR-4673. However, it is not a Qualified Federal disaster and is therefor subject to the 10% of AGI offset/deduction.

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