Discussion:Old Employer Owes Employee Wages
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Discussion Forum Index --> Basic Tax Questions --> Old Employer Owes Employee Wages
Discussion Forum Index --> Tax Questions --> Old Employer Owes Employee Wages
| 17 December 2007 | |
| I have a client who worked as employee for a business that went out-of-business. The employee was still owed some wages. His union reps tried to get the money on his behalf but was unsuccessful. Is there a way to include this "loss" on his Schedule A as a deduction?? Thanks. | |
| 2007-12-17 | |
| How much in wages did he loose? he's not paying taxes on lost wages. This situation is not a Sch A "casualty deduction" | |
Bottom Line (talk|edits) said: | 17 December 2007 |
| Has he contacted his state wage and hour board? They may be able to help get the back money. | |
| 17 December 2007 | |
| Keith, if your client is a cash basis taxpayer, what is his basis in his work effort? | |
TheTinCook (talk|edits) said: | 17 December 2007 |
| No deduction for lost wages unless he included it in income at somepoint, or if he had some basis in the wages, for instance business expenses that were supposed to get reimbursed, but didn't. | |
| 17 December 2007 | |
| yep, he's contacting the state board too, no word yet. basis in work effort, not sure i understand the question. he was simply an employee (union employee). | |
Bottom Line (talk|edits) said: | 17 December 2007 |
| If no basis, sounds like no loss. | |
| 17 December 2007 | |
| Unless the wages were accrued AND included on his W-2 - there is NO loss to claim. | |
| 2007-12-18 | |
| Scow, "bad debts" are for the most part biz related. Read this: http://www.taxalmanac.org/index.php/Bad_Debt_Deduction | |
| 18 December 2007 | |
| would have to have basis in the debt to deduct it anyway | |
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