Submitted By: someone
Answered: December 9, 2020 10:29 pm

I was scammed out of $20,000 (I was told my grandson was in jail and his attorney needed money). Can I deduct this?

According to AARP, this is a common scam that has cost grandparents millions of dollars. Unfortunately, the tax rules don’t help in any way. The deduction for a theft loss—assuming such scam is a theft under state law—cannot be claimed in 2018 through 2025.

Tax Glossary

Amended return

On Form 1040X, you may file an amended return within a three-year period to claim a refund or correct a mistake made on an original or previously amended return.

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