How do you claim hurricane damage on your taxes?

Step 1: confirm the declaration

Check FEMA's disaster declarations for your county and note the declaration number, which the IRS asks for. Hurricane Helene in 2024 is a recent example that reached Georgia. Starting with tax year 2026, some state declared disasters can also qualify when both the Governor and the Treasury Department make the required determination.

Step 2: figure the loss

1. Take the smaller of the drop in fair market value or your adjusted basis in the home.
2. Subtract insurance payments received or expected, including recoverable depreciation, and any FEMA grants for the same damage.
3. Apply the floors: normally $100 per event and 10 percent of adjusted gross income.

For disasters Congress designates as qualified disasters, the floor is $500 per casualty, there is no 10 percent test, and the loss can be added to the standard deduction instead of itemizing. Helene losses received this treatment.

Step 3: choose the year

For a federally declared disaster, you can elect to deduct the loss in the tax year before the disaster, which can mean amending a return you already filed and getting money back sooner. The election has its own deadline.

Step 4: keep proof

• Photos and video of the damage.
• Insurance estimates, settlement letters and payment records.
• Contractor estimates and invoices.
• Appraisals, if available.

IRS Publication 547 and the Form 4684 instructions have the current rules. This is general information, not tax advice, and a tax professional should run the numbers. For the insurance side, see how claim payments are figured and percentage wind deductibles.