How you could deduct Hurricane Ian disaster losses from your taxes

On Friday, WINK News first reported that the Federal Government did not declare Hurricane Ian a “qualified disaster.” That means there are some limitations on what hurricane losses you can deduct from your taxes.

While local lawmakers told WINK News exclusively they’re working on retroactive legislation to remedy this, accountants told WINK News it could mean people lose tens of thousands of dollars in refunds.

But don’t panic. The IRS says on its website that people can claim disaster-related casualty losses on their tax returns if they are in federally declared disaster areas, even though there is no law to back that up.

Again, the IRS website says affected taxpayers claiming disaster loss should put the disaster designation “Florida Hurricane Ian” in bold letters at the top of the appropriate form. Then include the FEMA disaster declaration number, DR 4672/FL.

WINK News got some guidance from a couple of certified public accountants. They are pushing their clients to do what the IRS says: submit the losses.

One of the accountants gave WINK News the actual statement that he’s sending to clients. It reads, in part, “filing a Hurricane Ian casualty may be countermanded based on legislative mandates. Any penalties, interest, and additional tax preparation and representation will be the taxpayer’s responsibility.”

The people WINK News spoke with over the last week said the whole thing is confusing. And it shouldn’t be this confusing for their clients during such a difficult time.

“They’re running businesses. They’re… they got their kids go in different schools and all these kinds of things. And the last thing that they need to be worried about is the tax consequences,” Adam Davis, a certified public accountant, said.

Essentially their advice is, “enter… but enter at your own risk.”

Congressman Byron Donalds and senator Rick Scott are on the record with WINK News, saying they’re actively working on legislation to guarantee this is going to happen for people.

But, for the time being, we have to wait and see.