Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thank you for using Just Answer,
Your situation is unfair. Unfortunately, you would not be allowed a loss against your taxes based on those reasons.
the distribution form the 401K and the resulting unemployment would not be relevant for any deductions in tax.
I wish I could advise differently and would if there were a legal way for you to lessen this tax blow after the treatment by the employer.
I am sure this is not what you were hoping to find but I thank you in advance for a positive rating taking into consideration the tax laws.