Can victims of email scams take stolen money off their taxes?
Yes, usually fraud victims can deduct stolen money as a “casualty loss” tax deduction. For example, if a victim is cheated out of $10,000 (and he is in the 20% tax bracket) then the deduction will save him about $2,000. So it is worth doing. Victims can use transfer receipts, canceled check stubs and printed copies of emails as evidence of their loss.
Yes, usually fraud victims can deduct stolen money as a “casualty loss” tax deduction. For example, if a victim is cheated out of $10,000 (and he is in the 20% tax bracket) then the deduction will save him about $2,000. So it is worth doing. Victims can use transfer receipts, canceled check stubs and printed copies of emails as evidence of their loss. To claim a casualty or theft loss, one must complete Form 4684 “Casualties and Thefts”, and attach it to his tax return. Even if the theft occurred many years ago, a victim should still be able to take the loss off THIS year’s taxes, provided he has not taken it off during any previous years.
