Net Disaster Loss - Relief for Some Non-Itemizers
Normally taxpayers who aren’t itemizing deductions don’t include Schedule A in their return. However, taxpayers who are not itemizing and who have a net qualified disaster loss are eligible to claim both the qualified disaster loss and the standard deduction. Line 16 of Schedule A, “Other Itemized Deductions,” is used to accomplish this by doing the following (duplicated from the 2023 Form 4684 instructions page 3):
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Enter the amount from Form 4684, line 15, on the dotted line next to line 16 on Schedule A (Form1040), or line 7 of Schedule A (Form 1040-NR), and the description, “Net Qualified Disaster Loss.”
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Also, enter on the dotted line next to line 16 of Schedule A (Form 1040) or line 7 of Schedule A (Form 1040-NR), your standard deduction amount and the description, “Standard Deduction Claimed With Qualified Disaster Loss.”
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Combine these two amounts and enter the total in the entry space on line 16 of Schedule A (Form1040), or line 7 of Schedule A (Form 1040-NR), and on Form 1040, 1040-SR, or 1040-NR, line 12a
AMT
The standard deduction is not included in the AMT computation. However, the net disaster loss amount that was added on to the standard deduction is allowed as a deduction in the AMT computation. (Disaster Tax Relief Act of 2020, Sec. 304(b)(1)(D))