Definitions

Three types of casualty losses are described in these instructions.

1. Federal Casualty Losses.

2. Disaster Losses.

3. Qualified Disaster Losses.

All three types of losses refer to federally declared disasters, but the requirements for each loss vary. A federally declared disaster is a disaster determined by the President of the United States to warrant assistance by the federal government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act). A federally declared disaster includes (a) a major disaster declaration or (b) an emergency declaration under the Stafford Act.

Federal casualty loss. A federal casualty loss is an individual’s casualty or theft loss of personal-use property that is attributable to a federally declared disaster. The casualty loss must occur in a state receiving a federal disaster declaration. If you suffered a federal casualty loss, you are eligible to claim a casualty loss deduction. If you suffered a casualty or theft loss of personal-use property that was not attributable to a federally declared disaster, it is not a federal casualty loss, and you may not claim a casualty loss deduction unless the exception applies. Theft losses incurred in a transaction entered into for profit may still be deductible. See the Caution under Losses You Can Deduct, later.

Disaster loss. A disaster loss is a loss that is attributable to a federally declared disaster and that occurs in an area eligible for assistance pursuant to the Presidential declaration. The disaster loss must occur in a county eligible for public or individual assistance (or both). Disaster losses are not limited to individual personal-use property and may be claimed for individual business or income-producing property and by corporations, S corporations, and partnerships. If you suffered a disaster loss, you are eligible to claim a casualty loss deduction and to elect to claim the loss in the preceding tax year. See Disaster Losses , later.

Qualified disaster loss. A qualified disaster loss includes an individual’s casualty or theft loss of personal-use property that is attributable to:

• A major disaster declared by the President under section 401 of the Stafford Act in 2016;

• Hurricane Harvey;

• Tropical Storm Harvey;

• Hurricane Irma;

• Hurricane Maria;

• The California wildfires in 2017 and January 2018;

• A major disaster that was declared by the President under section 401 of the Stafford Act and that occurred in 2018 and before December 21, 2019, and continued no later than January 19, 2020 (except those attributable to the California wildfires in January 2018 that received prior relief); and

• A major disaster that was declared by the President during the period between January 1, 2020, and September 2, 2025. Also, this disaster must have an

2 Instructions for Form 4684 (2025)

incident period that began on or after December 28, 2019, and on or before July 4, 2025, and must have ended no later than August 3, 2025.

Note: The definition of a qualified disaster loss does not extend to any major disaster that has been declared only by reason of COVID-19.

If you suffered a qualified disaster loss, you are eligible to claim a casualty loss deduction, to elect to claim the loss in the preceding tax year, and to deduct the loss without itemizing other deductions on Schedule A (Form 1040). See Qualified disaster losses and Increased standard deduction reporting , later.

Go to IRS.gov/DisasterTaxRelief for date-specific declarations associated with these disasters and for more information.