Can I deduct money that was stolen from me on my taxes?

Answer 1

Yes, you can deduct the theft losses.
You have to file Form 4684. You will also file Schedule A (Form 1040), Itemized Deductions.

For a theft loss proof, your records should show all the following.
1. When you discovered that your property was missing.
2. That your property was stolen.
3. That you were the owner of the property.
4. Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery.

The limit of deduction for all your casualty and theft losses is:
1. You must reduce each casualty or theft loss by $100.
2. You must further reduce the total of all your casualty or theft losses by 10% of your adjusted gross income.

Answer 2

Yes.....but......

First you must subtract 10% of your income + $100 from the amount. Then, the amount that is left is only deductible if you itemize. See Schedule A for a list of other itemized deductions. Generally, unless the loss is rather big or you have a mortgage, you may not have enough to itemize.

Lastly, was a police report filed? If not, the theft probably wouldn't stand up to an additional look from the IRS.

Answer 3

You cannot deduct anything that was reimbursed by insurance. If you did not have insurance or were not fully reimbursed, then see Wayne's answer, but note that it applies only to the unreimbursed portion of the loss.

Answer 4

FIRST, you must itimize your deductions. If you don't have enough to itemize, you can't claim the loss anyhow. Do you itemize on schedule a?