You might be able to deduct it as a theft loss, but there are a lot of limitations, so the deduction might not amount to anything. First of all, if you have insurance that covers theft, you must file an insurance claim. Most homeowners insurance includes theft coverage. The loss that you can claim on your tax return is only the amount that was not reimbursed by your insurance.
In calculating the deduction for a theft loss, you first have to subtract $100 from the unreimbursed amount of the loss. Then you have to subtract 10% of your Adjusted Gross Income (AGI). What's left after those subtractions is the amount you can deduct.
If you still have something to deduct, a theft loss is an itemized deduction. To get any tax benefit from the deduction, your total itemized deductions, including the deductible portion of the theft loss, have to be more than your standard deduction.
If you think you can take a deduction for the theft loss, see IRS Publication 547 for more details about the deduction, including the proof of loss that you will need. You can download Pub. 547 from the following link.
http://www.irs.gov/pub/irs-pdf/p547.pdf
Here's how to enter a theft loss in TurboTax.
- Click the Federal Taxes tab.
- Click Deductions & Credits.
- Click "I'll choose what I work on" or "Jump to a full list."
- On the screen "Your 2017 Deductions & Credits," scroll all the way down to the last section, "Other Deductions and Credits."
- Click the Start, Update, or Revisit button for Casualties and Thefts.
Finally,when you posted your question you indicated that you are using TurboTax Free Edition.You cannot claim itemized deductions in Free Edition. You would have to upgrade to Deluxe or higher, or use any edition of the CD/Download TurboTax software.
