If you’re not enjoying this weekend, it probably because you’re toiling to meet a deadline on the other side of it: Tax Day.
April 15 marks a dreaded day on every taxpayer’s calendar. But the Ohio Insurance Institute (OII) released a guide to consumers this week that can be the tonic to assuage that anxiety:
If you’ve dipped into your own pocket for property losses not covered by insurance, you may be able to use it as a tax deduction.
Disasters that hit the Buckeye State last year included “derecho” storms in the summer and Superstorm Sandy in October. Superstorm Sandy mainly struck residents in Ohio’s Cuyahoga County, according to the OII.
Losses that were “not reimbursable through insurance” may be filed as disaster losses on a federal tax return, said the OII, which also added that filers should “discuss the particulars with a qualified tax advisor.”
The institute included a list of requirements that need to be met:
–The loss needs to stem from a disaster that is included on the Federal Emergency Management Agency’s list of federal catastrophes.
–The loss needs to be connected to “any sudden, unexpected or unusual event such as a flood, hurricane, tornado, fire, earthquake or even a volcanic eruption.” Corrosion, deterioration, or typical “wear-and-tear” is not covered.
–An allowable deduction can be calculated by totaling all losses, subtracting any reimbursements through an insurer, subtracting $100 from each event, then reducing that total by 10 percent of your adjusted gross income.
According to the OII, around $34.4 million in losses for Ohio were related to auto claims from the “derecho storms,” with the average size of an auto coverage claim being around $2,200. The institute said that around 16 percent of claims were car-related.
