Can I still claim disaster clean up after 2 years?

Question

I am still cleaning up after a big disaster and paying out of pocket to clean up and fix things. Can I still claim after 2 years?

DennisR · Accepted Answer

There are a few ways a disaster or casualty can affect your tax return. The most common two are disaster distributions from your retirement fund or claiming disaster losses as a deduction. It sounds like you're referring to the latter.

Personal casualty losses can only be claimed as a deduction if it was the result of a federally declared disaster or any other qualified disaster. Depending on the disaster, claiming the loss as a deduction will have different rules:

* For federally declared disasters, the loss must also be greater in value than $100, and the total value must be more than 10% of your AGI. It may only be claimed as an itemized deduction. 
* For qualified disasters, this is a federally declared disaster that can be claimed across several years and is limited to a specific list of disasters. There is a $500 loss minimum requirement, but you can claim the loss even when taking the Standard Deduction.

DennisR · Accepted Answer

Some states may have a credit or a deduction for state specific disasters. The easiest way to see if your state has a tax benefit available to you for disaster losses is to search the state's Department of Revenue website.