If your manager or consultant stole a portion of your income, you still need to report the full amount on your taxes.
Here are some possible steps as it relates to filing your US Income Taxes:
- Enter the total income you received before any theft occurred - under Income tab after logging into TurboTax
- You may be able to claim a theft loss deduction on Schedule A (Form 1040). Theft losses are usually deductible only if they are caused by a business transaction or a federally declared disaster. They must be reduced by any insurance or money that is received.
- Currently Form 4864 for reporting your loss is not yet ready in TurboTax - when it is ready it will be noted here.
- Once ready if you qualify TurboTax can guide you through the reporting steps.
For more details, refer to IRS Publication 547.