You do not get to claim her loss of pay. It is simply income that was never received and will not be taxed. Not having to pay tax on it is the same as deducting it.
You are not automatically entitled to deduct a debt because the obligation has become worthless. To get a deduction, you must have suffered an economic loss. According to the IRS, you have a loss only when:
-you have already reported the money owed as income
-you paid out cash, or
-you made credit sales of inventory that were not paid for.
