15 — Casualty and Theft Losses Updated for tax year 2025

What this line means

Casualty and theft losses on personal-use property, but only if the loss is attributable to a federally declared disaster. Since 2018, personal casualty and theft losses are deductible only if they result from a disaster declared by the President under the Stafford Act. The loss is calculated on Form 4684 and is subject to a $100 per-event floor and a 10% AGI floor.

Does this apply to you?

• You suffered property damage from a hurricane, wildfire, tornado, flood, or other federally declared disaster
• You had a casualty loss from a federally declared disaster that was not covered by insurance
• Your loss exceeds the $100 per-event floor and 10% of AGI threshold

Easy to overlook

Non-disaster losses are no longer deductible for personal property Before 2018, you could deduct casualty and theft losses from any event (burglary, car accident, fire). The Tax Cuts and Jobs Act eliminated personal casualty loss deductions except for federally declared disasters. A home burglary, a car hit by an uninsured driver, or a house fire not in a declared disaster area does not qualify. ¹ [SOURCE: Tax Cuts and Jobs Act — casualty loss limitation]

You must reduce the loss by insurance proceeds The deductible loss is the decrease in fair market value of the property minus any insurance or other reimbursement you received. If insurance covered 80% of the damage, only the uninsured 20% is potentially deductible. You must file an insurance claim if you have coverage — you cannot skip the claim and deduct the full loss. ² [SOURCE: IRS Form 4684 instructions]

Watch out for this

Claiming a personal casualty loss from a non-disaster event. A pipe burst, a tree falling on your house, or a burglary is not deductible unless it occurred in a federally declared disaster area. Check the FEMA disaster declarations list to verify your loss qualifies. Losses from business or investment property follow different rules on Form 4684 Section B.

Related lines on your return

• Line 17 — Schedule A — Total itemized deductions
• Form 4684 — Casualties and Thefts (calculates the deductible loss amount)
• Line 16 — Schedule A — Other itemized deductions