Disaster Losses — 2025 Inst 4684 (PDF)

A disaster loss is a loss that occurred in an area determined by the President of the United States to warrant federal disaster assistance and that is attributable to a federally declared disaster. It includes a major disaster or emergency declaration.

Tip: For a list of federally declared disasters and disaster areas, go to FEMA.gov/Disaster .

To determine the amount to deduct for a disaster loss, you must take into account as reimbursements any benefits you received or which you have a reasonable possibility of receiving from federal or state programs to restore your property.

Disaster year. The disaster year is the tax year in which you sustained the loss attributable to a federally declared disaster. Generally, a disaster loss is sustained in the year the disaster occurred. However, a disaster loss may also be sustained in a year after the disaster occurred. For example, if a claim for reimbursement exists for which there is a reasonable prospect of recovery, no part of the loss for which reimbursement may be received is sustained until it can be ascertained with reasonable certainty whether you will be reimbursed.

Example. In December 2024, your car was destroyed in severe flooding that occurred in the area where you live. The area where you lived was designated by FEMA to be eligible for public or individual assistance (or both). You immediately filed a claim for reimbursement with your insurance company. There was a reasonable prospect that you would recover the full amount of your loss. The claim was settled in January 2025 when your insurance

company reimbursed you for only half of your loss. The disaster year is 2025 (not 2024 when the loss occurred). Your loss was sustained in 2025 because that’s when it became reasonably certain whether you would be reimbursed. You can either deduct the unreimbursed loss on your tax return for the disaster year (2025) or make an election to deduct the unreimbursed loss on your tax return for the preceding year (2024).

Caution: If you realize a gain from the reimbursement on your casualty loss, do not report the gain until the year in which that amount is received.

Election to deduct loss in the preceding year. If you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can elect to deduct the loss in the tax year immediately before the disaster year. A list of areas warranting public or individual assistance (or both) is available at the FEMA website at FEMA.gov/Disaster .

To make this election for a loss in disaster year 2025, complete Part I of Section D on your 2024 Form 4684 and attach it to your 2024 original or amended return that claims the disaster loss. See Section D—Election To Deduct Federally Declared Disaster Loss in Preceding Tax Year , later.

You must make an election to deduct a 2025 disaster loss on your 2024 return on or before the date that is 6 months after the regular due date for filing your original return (without extensions) for the disaster year. For calendar year individual taxpayers, the deadline for electing to take a 2025 disaster loss on your 2024 tax return is October 15, 2026.

Revoking a prior election to deduct loss in the preceding year. Complete Part II of Section D if you want to revoke a 2024 disaster year election to deduct a federally declared disaster loss in the preceding tax year. Attach the completed Section D to an amended return for the preceding year (that is, to an amended 2024 return for the revocation of a 2025 disaster year election). See Section D—Election To Deduct Federally Declared Disaster Loss in Preceding Tax Year , later.

Your amended return revoking the election must be filed on or before the date that is 90 days after the due date for making the election and on or before the date you file any return or amended return for the year that includes the disaster loss.

Your amended return should refigure your tax liability as a result of revoking the election. You must pay or make arrangements to pay any tax and interest due as a result of the revocation.

Home made unsafe by disaster. If your home was located in a disaster area and your state or local government ordered you to tear it down or move it because it was no longer safe to use as a home due to the disaster, the resulting loss in value is treated as a disaster loss. The order for you to tear down or move the home must have been issued within 120 days after the area was officially declared a disaster area.

For purposes of figuring the disaster loss, use the value of your home before you moved it or tore it down as its fair market value after the casualty.

4 Instructions for Form 4684 (2025)

Qualified disaster losses. 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 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).

For specific instructions for reporting these qualified disaster losses, see Line 11 and Line 15, later. Go to IRS.gov/DisasterTaxRelief for date-specific declarations associated with these disasters and for more information.

Note: You can deduct qualified disaster losses without itemizing other deductions on Schedule A. Moreover, your net casualty loss from these qualified disasters doesn’t need to exceed 10% of your adjusted gross income (AGI) to qualify for the deduction, but the $100 limit per casualty is increased to $500. See Increased standard deduction reporting next for more information.

Increased standard deduction reporting. If you have a net qualified disaster loss and aren’t itemizing your deductions, you can claim an increased standard deduction using Schedule A (Form 1040) or Schedule A (Form 1040-NR), by doing the following.

Enter the amount from Form 4684, line 15, on the dotted line next to line 16 on Schedule A (Form 1040), or line 7 of Schedule A (Form 1040-NR), and the description “Net Qualified Disaster Loss.”
Also, enter on the dotted line next to line 16 of Schedule A (Form 1040) or line 7 of Schedule A (Form 1040-NR), your standard deduction amount and the description “Standard Deduction Claimed With Qualified Disaster Loss.”
Combine these two amounts and enter the total in the entry space on line 16 of Schedule A (Form 1040), or line 7 of Schedule A (Form 1040-NR), and on Form

1040 or Form 1040-SR, line 12e, or Form 1040-NR, line 12.

Caution: Nonresident aliens cannot claim the standard deduction. However, there is an exception. Students or business apprentices, who file Form 1040-NR, may be able to take a standard deduction if they are eligible for benefits under Article 21(2) of the United States-India Income Tax Treaty. They will enter the standard deduction amount found for their filing status on Form 1040 or 1040-SR. See chapter 5 of Pub. 519 and the Instructions for Form 1040-NR for details.

Caution: The alternative minimum tax adjustment for the standard deduction is made retroactively inapplicable to net qualified disaster losses. See Taxpayers who also file the 2025 Form 6251, Alternative Minimum Tax for Individuals , later, for more information.

More information. See Pub. 547 for more information about disaster losses.