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If I was apart of a romance scam involving bitcoin could I get my money back through my taxes by claiming it as a loss?

I was apart of a romance scam involving bitcoin. I feel lame for falling for everything this person put me through, but I was extremely vulnerable at the time.

This person facetime called me showing me he was legit (not a scam) and sent $8k into my bank account to also reassuring me he isn't a scam. Very long story short I have a police report on him/her and found out it was a tax fraud he put me through. He stole someones taxes and put them into my account (He told me that the $8k was apart of his retirment money) He asked me to send them back to him through bitcoin along with some of my money, so he can get everything he needs to be able to retire from the army and fly out to meet me. I felt weird about it, but he sent me evidence and things to confirm its really him. He even sent me his confirmation flight to my town (I went on Alaska Airlines to confirm it was a flight and it was).

I lost out on a lot of money due to this scam and gained a lot of depression (it was Jan 2020, right when covid was beginning and financial problems were arising. Definitely hard times for me. I just got out of an 11 year domestic violence relationship, became a new single mom and was new to the online dating life. I definitely learned my lesson through all this pain).

My question to you is can I claim the money that was mine that I gave him through bitcoin as a theft loss on my 2020 taxes?  I'm truly just lost with everything I've been through, not sure what to do with this whole situation. I just made a report to the police and they are still currently investigating the whole fraud. Please help me if you could, thank you. I appreciate you.
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1 Reply
HelenC12
Expert Alumni

If I was apart of a romance scam involving bitcoin could I get my money back through my taxes by claiming it as a loss?

No, you won't be able to claim the personal theft on your income tax return. The deduction for personal casualty or theft losses has been repealed in tax years 2018–2025, unless the loss occurred in a federally-declared disaster area.

 

Previously, uninsured losses exceeding $100 due to fire, theft, or natural disaster could be deducted if the total loss amount exceeded 10% of the AGI, regardless of location.

 

For additional information, see What if I have property that was lost or damaged (a casualty loss)?

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