Someone got into my Schwab investment account and stold $20,000 of my money. Some was in an IRA and I have to pay a penally on the sold stocks, can I take a deduction?

[sunbuck71]

I tried working with Schwab's fraud dept but they did nothing and saying I had 60 days to report the loss or they were not responsible for my losses.

Also, part of theft was in an IRA account. Not only did I lose my money but I have to pay taxes and penalties for selling stocks I did not sell.

[MinhT1]

This would be a theft and casualty loss. And this loss is not deductible.

The tax treatment of personal casualty losses and thefts is changed under the Tax Cuts and Jobs Act. Pursuant to the TCJA, the itemized deduction for personal casualty and theft losses is temporarily limited in tax years 2018 through 2025 solely to losses attributable to federally-declared disasters.

[SweetieJean]

Suggest you file a police report, and consult with a local attorney.  Also check with your own insurance company.

[Hal_Al]

Did Schwab issue you a 1099-R for the amount that was removed from your IRA?