How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29656
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Will filing Form 4684 increase the chance of an audit?

This answer was rated:

After filling out and submitting IRS Form 4684 with our 2011 Income Tax Return, how much of our $7,593.00 can we expect to receive? Also, will we increase our chances of the IRS conducting an audit of our return by filing the extra Form 4684?


Hi and welcome to JustAnswer!
To claim that deduction – you should itemize on the schedule A - if you do not itemize - there is no deduction.
In additional - you must subtract $500 from each casualty, and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty losses for the year – so your actual deduction will be less than the full amount of your loss.
As a result - your taxable income will be reduced by $7,593 - $500 - 10% of your AGI.
Your actual tax saving will be based on your tax bracket - this if you are in 25% marginal tax bracket - that will be your saving.
Yes - deducting Casualties, Disasters, and Thefts losses will increase your chances to be audited. But we never know if it will trigger the actual audit or not.


Thank you, ***** ***** pays to go with a pro!

Lev and 2 other Tax Specialists are ready to help you