Solved: Unpaid salary - My employer went bankrupt and did not pay me for the last 2 weeks that I worked and my PTO balance. Can I deduct this loss of $7K?
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Unpaid salary - My employer went bankrupt and did not pay me for the last 2 weeks that I worked and my PTO balance. Can I deduct this loss of $7K?

 
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Level 15

Unpaid salary - My employer went bankrupt and did not pay me for the last 2 weeks that I worked and my PTO balance. Can I deduct this loss of $7K?

Wages and income never received is not reported as income on your return.

Because this was never reported as income it cannot be taken as a loss.  If it was reported as income then it could be taken as a loss. 

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Level 15

Unpaid salary - My employer went bankrupt and did not pay me for the last 2 weeks that I worked and my PTO balance. Can I deduct this loss of $7K?

Wages and income never received is not reported as income on your return.

Because this was never reported as income it cannot be taken as a loss.  If it was reported as income then it could be taken as a loss. 

View solution in original post

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