What is the Catastrophe Savings Account subtraction?
You may subtract the amount you contributed to a Catastrophe Savings Account and interest income earned by the account.
If your legal residence is insured against hurricane, rising floodwaters, or other catastrophic windstorm event damage, your contributions are limited to the following amounts:
- $2,000 if the qualified deductible is $1,000 or less
- Twice the qualified deductible if it is between $1,000 and $7,500
- $15,000 if the qualified deductible is more than $7,500.
If your legal residence is not insured against hurricane, rising floodwaters, or other catastrophic wind event damage,
the limit is $250,000 or the value of your legal residence, whichever is less.