GALVESTON, Texas—People struggling to recover from Hurricane Ike could get some help from the Internal Revenue Service.

The government will deduct uninsured losses from a taxpayer’s income, reducing the amount of taxes owed or increasing next year’s refund.

Taxpayers with insurance have four years to replace their lost property or repair their damaged home before they must claim the proceeds as income.

Although Galveston County residents can wait to claim Ike-related losses on this year’s tax return, due April 15, the government’s tax collection agency also allows residents of a federally declared disaster zone to claim losses immediately by amending their 2007 tax return.

Ike came ashore Sept. 13 flooding 75 percent of island houses.

Losses are calculated using the value of the property before the storm minus insurance payments and any assistance provided by the federal government to repair the property.

For example, a property owner with $50,000 in damage who received only a $40,000 insurance payment could claim the remaining $10,000 as a loss.

The loss must be further reduced by $100 and then by 10 percent of a taxpayer’s adjusted gross income before it can be claimed.

Uninsured personal property not covered by reimbursement from the Federal Emergency Management Agency also can be claimed as a loss.

Property owners who get more money from their insurance policies than their property was worth before the storm must pay taxes on the gain, unless they use the money to buy replacement property worth more than or equal in value to the damaged property.

The government gives taxpayers four years to spend the difference before they must pay taxes on it.

Insurance proceeds for personal property in a home are not considered a gain.

Property owners whose houses are purchased with Hazard Mitigation Grant funds must claim the proceeds as a gain unless they invest the money in another house.