Do Sandy Victims Get Disaster-Related Tax Breaks?
 Victims of Hurricane Sandy may be eligible for disaster-related tax breaks. Learn more here.Â
Laura Adams, MBA
Q. I had to file insurance claims to repair damage caused to my home by Storm Sandy. Can I deduct these on my tax return?
Answer. There are disaster-related tax breaks that Sandy victims may be eligible for, depending on where you live. If you replace or repair your property within 2 years (or 4 years in a federally declared disaster area) after receiving an insurance payout, the money isn’t taxable. So depending on how you spend the insurance funds, it may or may not be included in your income.
Keep good records of payments you receive and consult with a tax
accountant so you get all of the tax deductions and benefits that you’re entitled to. You can claim casualty losses on Form 4684, Casualties and Theftsopens PDF file —if you itemize deductions on your federal tax return.
Read Help for Victims of Hurricane Sandy to learn more.
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About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.