Is the profit sharing from stock?
If so, you could report this as a capital loss since it is a stock-based instrument in your profit sharing. To report, go to:
- federal>wages and income>investment income>stocks, bonds, other
- Now you will answer some preliminary questions. Say no if you did not receive a 1099B.
- Next screen is critical because it asks you for the sale price(proceeds), description, what you originally paid for it, date sold, date acquired etc. Try to fill in details to the best of your ability to get to the loss amount.
- Now this will be considered a capital loss.
- For the questions asking about employee stock, you will say no to this as this primarily addresses US Based employers.
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