If you invest in stocks, bonds, or mutual funds, you may be able to deduct certain expenses related to your investments. These expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Investment expenses are included as a miscellaneous expense on Schedule A subject to 2% AGI.
When you have stocks that have become completely worthless, you need to report them on Form 8949, Sales and Other Dispositions of Capital Assets, with your purchase date and December 31 as the date sold. This will determine whether this is a short-term or long-term loss.