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Submitted By: someone
Answered: July 22, 2019 3:09 am
Answered: July 22, 2019 3:09 am
I was scammed out of my retirement account (a victim of identity theft). Can I deduct the loss?
Alert the IRS, credit reporting bureaus, and other agencies that you have been a victim of identity theft. Determine whether this is a theft loss. Determine whether you can recover the funds. Unfortunately, if it’s a theft under state law and you can’t recover the money, you don’t get a tax break for it. For 2018 through 2025, no itemized deduction for a theft is allowed.
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Tax Glossary
Withholding
An amount taken from income as a prepayment of an individual’s tax liability for the year. In the case of wages, the employer withholds part of every wage payment. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding.
