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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 3375
Experience:  Over 20 Years experience
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I was scammed 16,000.00 which I withdrew from my savings account

Customer Question

I was scammed 16,000.00 which I withdrew from my savings account and sent overseas ( thinking that I was helping an american in serious jepordy. I can show the overseas transactions . There was a promise to pay back ..but it has been 15mo and of course the money is not coming back. Can I claim this loss when I file income taxes .. I did not file in 2011 for this believeing the money would be returned as promised . Am I just better off to do nothing ?
Submitted: 4 years ago.
Category: Tax
Expert:  R. Klein, EA replied 4 years ago.

Randalltax : Many smart people at duped. You believed you were doing the right thing.
Randalltax : For taxes, you may get some relief by declaring this is as a personal debt loss or as a casualty loss.
Randalltax : As a personal debt loss, you are limited to a 3000 per year loss against other income, with the balance carrying forward to the following year. This means your loss will take six years to absorb.
Randalltax : Alternately, you can declare a casualty loss on Schedule A, however, your 16k loss must first be reduced by 10% of our income plus another 100 reduction. Any amount you do not deduct you cannot carry forward.
Randalltax : Is there some additional information that would be helpful?
Randalltax : Or did you need further clarification?