Entering personal casualty loss deductions in ProConnect Tax

This article will assist you with entering personal casualty loss deductions in Intuit ProConnect.

Beginning January 2018–December 2025, personal casualty losses are nondeductible unless attributable to a federally declared disaster.

How the tax reform affects personal casualty losses

If your client suffers a personal casualty loss from a disaster declared by the president under Section 401 of the Stafford Disaster Relief and Emergency Assistance Act, your client can claim a personal casualty loss as an itemized deduction, subject to the $100-per-casualty and 10%--of-adjusted-gross-income (AGI) limitations.

If your client has personal casualty gains, you can still offset personal casualty losses against those gains, even if their losses aren't considered a federally declared disaster.

Qualifying for personal casualty losses under the tax reform

Follow these steps to qualify for personal casualty losses under these guidelines:

1. Go to the Input Return tab.
2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
3. Select Schedule D, 4797, etc.
4. Click the blue Details button to expand the input screen.
5. From the top of the screen, select 4684, 6781, 8824, 4255.
6. Locate the Casualties and Thefts (4684) section.
7. Enter a 1 in 1=personal, 2=business, 3=income, 4=employee.
8. Select 6 = Federally declared disaster, occured in 2018, 2019, 2020, 0r 2021 from the Disaster loss (Click on arrow to select from list) dropdown menu.