How are unpaid wages deducted as a bad debt?

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1273411

2026-03-22 06:10

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They probably aren't. Until they are received as taxable income, which probably didn't happen if they weren't paid...they can't be deducted as a loss. No tax basis to deduct. Sure, you can report them and then deduct them...but that really doesn't get you anywhere. (You do not get a tax deduction for money you did not make).

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