[Abar]

Hi
Recently somebody stole my identity and hacked into my IRA account which was with one of the major financial institutions. After investigation Institution returned the stolen money back to me. But, as the withdrawal was before time, they charged penalty and charged state income tax on the withdrawal amount. Financial institutaion did not retunred the tax which was charged by state. So, question is: 1) Should I get the tax amount from the financial institution. 2) Can I claim the refund of the tax amount from state during income tax return, as the transaction was without my authority? If so, could you please let me know the steps..

Thanks
Abar

[AtlantaTaxExpert]

Abar:

You can claim a refund for the state income taxes withheld. This amount should be reflected on Form 1099-R, which will be attached to the state income tax return when you claim the refund.

The Form 1099-R should be provided by the financial institution.

[Abar]

Thanks for your suggestion

[AtlantaTaxExpert]

Glad to help!