After you have suffered loss from a federally declared disaster, you can deduct some of those losses on your Internal Revenue Service (IRS) tax return. The IRS has detailed guidelines concerning the losses that are tax deductible and which ones are not.
Federally Declared Disasters
A federally declared disaster affects many people over a wide area. These disasters usually are hurricanes, wildfires, floods, blizzards, or earthquakes. The Federal Emergency Management Agency (FEMA) has a website that lists all federally declared disasters. Losses from disasters that are not federally declared disasters do not qualify as tax deductions.When you file capital losses on your tax forms, you can subtract it from your 2022 or 2023 taxes. Since you most likely already filed your 2022 taxes, you can amend your forms and resubmit. Unfortunately, you only have six months after the due date to refile, which is Oct. 15, 2023. For losses you had in 2023, you have until Oct.15, 2024, to file.
