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.

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Tax Glossary

Taxable income

Net income after claiming all deductions from gross income and adjusted gross income, such as IRA deductions, itemized deductions, or the standard deduction, and personal exemptions.

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