- LA mayor dismisses fire chief over response to most destructive wildfire in city history last month
- Some in Hurricane Helene-ravaged North Carolina embrace Pres. Trump’s push to abolish FEMA
- Homes destroyed: Western NC families battling insurance disputes after Hurricane Helene
- Freezing weather, wildfire and flood risk forecast across Texas
- ‘Life-threatening cold’ expected as polar vortex stretches across U.S. after deadly weekend flooding
If you were affected by Hurricane Beryl or the derecho storm, you could save money on your income taxes
Southeast Texas was hit hard by two major disasters in 2024: the derecho storm in May and Hurricane Beryl in July. If you were affected, it could lower your taxes.
HOUSTON — Hundreds of thousands of people had damage to their homes and businesses after a powerful derecho storm slammed Southeast Texas with hurricane-force winds in May 2024. The area was still reeling and trying to recover when Hurricane Beryl roared ashore last July.
Damage totals from both natural disasters were in the billions of dollars.
Who qualifies for deductions in natural disasters?
Residents or businesses in a county federally declared a disaster area may qualify for storm-related casualty losses, according to the IRS.
If you had storm damage not covered by insurance or FEMA, or suffered other financial losses, you may qualify for casualty loss deductions on your 2024 income tax return.
- The casualty loss deduction is now easier to claim. You don’t need to itemize deductions or meet the usual 10% of adjusted gross income threshold.
- Each casualty loss over $500 can be deducted.
- Even if you usually take the standard deduction, you may now be able to claim casualty losses related to federally declared disasters.
- Use Form 4684 for deductions. Include FEMA disaster declaration code 4781-DR for the derecho or DR-4798-TX for Beryl.
Additional tax benefits following natural disasters
- If you received disaster relief assistance for home repairs or replacement of belongings, the money is excluded as gross income so you don’t have to report it.
- If you withdrew money from your 401K or other retirement plans to cover disaster expenses, they are not subject to the early 10% withdrawal penalty.
- If you lost tax records in the disaster, you can request free copies or transcripts from the IRS.
For more help, check irs.gov or call 1-800-829-1040.