Can I claim a tax deduction for my totalled car in 2025?

Thanks for the quick response. I had no idea about the 2018 changes - that really sucks! I'm pretty sure I don't have GAP insurance. Is there ANYTHING tax-related I can do? Like could I donate what's left of the car and get a charitable donation deduction?

The salvage value of the car will already be factored into what the insurance company pays you, so you won't have anything left to donate. However, if you had any medical expenses from the accident that weren't covered by insurance, those might be deductible if your total medical expenses for the year exceed 7.5% of your adjusted gross income. For the loan situation, I'd suggest calling your lender. Sometimes they have hardship programs or can restructure the remaining balance. Also check your original paperwork carefully - GAP coverage is sometimes included without people realizing it.

Does it actually work with non-standard deductions though? I've tried tax software before and it never seems to catch these unusual situations.

How is this any different than just talking to a tax professional? Seems like another AI thing that just tells you generic info you could Google.

It absolutely works with unusual situations - that's actually what it's best at. It's built to catch the things most tax software misses because it analyzes your specific documents rather than just asking generic questions. It's different from just talking to a tax professional because it's available 24/7, costs way less, and you can run multiple different scenarios to see how they affect your taxes. It doesn't just give generic info - it gives you specific advice based on your actual documents and situation. I was skeptical too until I tried it.

How does that even work? Insurance companies deliberately make it impossible to reach anyone. If this actually works I need it like yesterday.

Yeah right. Nothing can get you through insurance phone lines. They design those systems specifically to make you give up and accept whatever lowball offer they give you. I'll believe it when I see it.

It uses some kind of technology that navigates the phone systems for you. Once you sign up, you get a special number to call, and their system connects with the insurance company's phone system and stays on hold for you. When they finally reach a human agent, you get a call connecting you directly. I don't know all the technical details, but it absolutely works. I was just as skeptical as you are. I had been trying to reach someone at my insurance company for over a week with no success. With Claimyr, I was talking to an actual claims adjuster in 4 minutes. They can't make the insurance company give you a better offer, but at least you can speak to someone who has the authority to make decisions.

I did put in a new sound system about 8 months ago for around $1,100. Do you think that would help? Insurance just seemed to use some generic value for my car's make and model.

Absolutely mention the sound system! Insurance companies use standard values unless you specifically tell them about upgrades. You'll probably need to provide the receipt if you have it, or some kind of proof of the upgrade. Even without a receipt, take photos if the system is still intact and visible. This is exactly the kind of thing that gets missed in standard valuations. $1,100 is significant and should definitely be factored in. Call them and specifically ask to have your claim adjusted to include the aftermarket sound system. Be persistent!

Diminished value claims are really state-dependent though. Some states make them nearly impossible to collect on, while others are more consumer-friendly. Worth looking into for sure, but don't get your hopes up too high.