What To Do When Disaster Strikes
Texas CPAs Give Five Tips to Help Disaster Victims Recover Financially

DALLAS — It may have only taken a day for the flood waters to recede, but it will take a much longer time for north Texas residents to overcome the financial devastation caused by this week’s flooding.

Texas CPAs know that the weeks and months following a disaster can be confusing and difficult, and that’s why the Texas Society of Certified Public Accountants (TSCPA) offers the following five tips to help flood victims get back on their feet.

Additional disaster recovery tips and personal finance information are available on TSCPA’s consumer Web site, www.ValueYourMoney.org, including the free publication Disaster Recovery: A Guide to Financial Issues.

The guide was created by the American Institute of Certified Public Accountants, the American Red Cross, and the National Endowment for Financial Education to help people affected by natural and man-made disasters recover from financial loss.

Tip #1: Give yourself time
You need time to think through your situation, absorb what has happened, and seek advice. Don’t immediately make any important financial decisions in the wake of this week’s floods.

Tip #2: Assess your financial position
The first step toward financial recovery is to prepare a plan for managing your income, expenses, and debt. If you’re in need of cash, determine whether you’re eligible for disaster relief funds from federal, state, or local governments. Make every effort to keep up with your bills. If you can’t, call your creditors to explain the situation and work out a payment plan.

Tip #3: File insurance claims quickly
Estimate the losses you have sustained as a result of the floods, gather your policy numbers, and then file appropriate insurance claims. The sooner you get started, the sooner your claim will be processed. Claims are frequently settled in the order in which they are received. If you do not have a complete listing of household items damaged in the disaster, check with relatives and friends for photographs taken in your home that may help to support your claim.

Tip #4: Deduct casualty losses
If your property has been damaged or destroyed by a casualty and your loss meets IRS deductibility guidelines, you may be eligible for a tax refund based on unreimbursed losses. Usually, this means claiming the loss on your next income tax return. But in cases where the President declares a federal disaster area, you may be able to accelerate your deduction by amending your return for the prior tax year.

Tip #5: Reevaluate your insurance coverage
Inevitably, disasters compel you to reconsider the role of insurance. Evaluate whether you have the right type and amount of property, health, disability, and life insurance.

ABOUT TSCPA
TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 27,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.