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Today, June 12 2017, I was told by the Massachusetts Department of Unemployment Insurance that I could not reopen a prior unemployment claim which I turned down in January 2015 arising from an involuntary layoff in December 2014 by a university located in Cambridge, Massachusetts.

The reason I was given that I could not reopen the prior unemployment claim which I turned down in January 2015 is because Massachusetts does not allow an individual to retroactively reopen predated unemployment insurance claims. Furthermore, I was told that I was disqualified from reopening the prior unemployment insurance claim because in July 2015, I found and started a full-time job out of state in North Carolina with a software company headquartered in New York state which I am receiving unemployment compensation currently.

After I found that out today. I called the Internal Revenue Service at 1-800-829-1040 to ask if I could take a tax loss this week on my amended filing of a Fiscal Year 2015 Form 1040X return for my lost Massachusetts unemployment insurance claim worth $7000 over a 26 week period which I was denied today. I understand that the IRS requires tax losses in 2015 to be offset by positive income during that period which I have to the amount of $52000 and Federal tax withheld of $6,800. The Internal Revenue Service told me today that taxpayer assistance on this matter is only available until April 19 2017 of this year and to read IRS Tax Topic 418 on unemployment compensation and to seek tax advice which I am doing here now.

Could an expert advise me on whether and how I may take a tax loss this week on my amended filing of a Fiscal Year 2015 Form 1040X return for my lost unemployment insurance claim worth $7000 over a 26 week period which I was denied today? Thank you in advance,

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    Not getting something that you could have gotten is not a loss. I didn't get a contract that pays me a million dollars, but that's not a million dollar tax loss. – David Schwartz Jun 13 '17 at 4:37
  • @David, Thank you for your comment. Is there any other provision in the IRS tax code I might use to recover part of the lost unemployment claim? – Frank Jun 13 '17 at 5:31
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The Internal Revenue Service does not allow one to deduct an opportunity cost for tax purposes as much as that benefit may be to used to reduce your tax liability.

  • I was just told by Massachusetss Department of Uuemployment Security that you cannot collect unemployment from two different states at the same time – Frank Jun 15 '17 at 15:03

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