Since 2018, personal casualty losses are deductible only for federally declared disasters, and even then only above both a small per-event floor and a 10%-of-AGI threshold.
How it works
Insurance reimbursement is subtracted from the total loss first. A $100 per-event floor is subtracted next. Finally, 10% of AGI is subtracted as a floor — whatever remains (never below zero) is the deductible loss.
What this does not include
This computes a single casualty event — multiple events in the same year each get their own $100 floor applied separately, though the 10%-of-AGI floor applies once to the combined total of all events for the year.
How to use this calculator
- Enter the loss amount, insurance reimbursement, and AGI.
Frequently asked questions
Why was this deduction restricted to federally declared disasters?
The 2017 Tax Cuts and Jobs Act narrowed the deduction significantly, eliminating it for most personal casualty losses except those tied to a federally declared disaster area.
What is a “federally declared disaster”?
An area the President has declared eligible for federal assistance under the Stafford Act — typically following events like hurricanes, wildfires, or major flooding.
Does this deduction require itemizing?
Yes — casualty loss deductions are claimed as an itemized deduction, meaning they only provide a tax benefit if total itemized deductions exceed the standard deduction.
