Ask Terry Questions Scam on income tax

Scam on income tax

By Terry Savage on March 12, 2024 | Taxes & Economy

My friend fell for scam right after her husband died. She filed police report. Is she able to claim this on her income tax?

Terry Says

It will be difficult to take that deduction. The Tax Cuts and Jobs Act (TCJA), for tax years 2018-2025, disallows an itemized deduction for personal casualty and theft losses, except for casualty losses attributable to a federally declared disaster.
She should consult an experienced CPA. And if she tries to take the loss, she must itemize her deductions. And that could result in a smaller deduction than if she took the standard deduction!
This time around, professional tax advice is a must!

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