Possible Tax Deduction Available For People With Ida Damage

GRAND ISLE, LA - SEPTEMBER 4: A bent stop sign in a storm damaged neighborhood after Hurricane Ida on September 4, 2021 in Grand Isle, Louisiana. Ida made landfall as a Category 4 hurricane six days before in Louisiana and brought flooding, wind damage and power outages along the Gulf Coast. (Photo by Sean Rayford/Getty Images)

A tax deduction may be available for people who suffered damage from Hurricane Ida and aren't getting help from their insurance.

A casualty loss can be taken as an itemized deduction. But in 2017, the standard deduction was increased to the point that it may be more than a taxpayer's total itemized deductions.

IRS Form 4684 may still allow the write-off of an amount equal to 90% of the difference between an insurer's damage appraisal and a contractor's estimate.

It may be a couple of months before the IRS issues clear guidance as to whether it will allow that option this year.