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Congress·In Committee·10 months ago

Congress considers restoring tax deductions for personal losses from crime, scams, and disasters

Also known as: Tax Relief for Victims of Crimes, Scams, and Disasters Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

Mixed Impacts(5)
Housing Assistance
Neutral
Homeowner
Neutral
Renter
Neutral
Small Business Owner
Neutral
Gig Worker
Neutral
Positive Impacts(1)
Chronic Illness
Helps

Key Points

  • Would bring back a tax deduction for certain personal losses, like property damage or theft, that many people could not deduct in recent years.
  • Makes the change apply to tax years starting after December 31, 2017, which could let some people revisit past tax returns.
  • Gives extra time to file for a tax refund or credit for older tax years (before 2025) if you would have qualified for this deduction but couldn’t claim it then.
  • The extra time is limited to refunds tied to this specific personal-loss deduction, not other tax issues.
TaxesConsumer Protection

Milestones

2 milestones2 actions
May 15, 2025Senate

Read twice and referred to the Committee on Finance.

May 15, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

After the Act is enacted (retroactive rule applies immediately in tax law)

Eligible personal casualty loss deductions would apply again for tax years starting after Dec. 31, 2017

People with qualifying disaster or theft losses in 2018 and later could potentially lower their taxes, including by amending old returns if needed

After enactment, through the due date (with extensions) of the tax return for the year that includes enactment

Extra time opens to file refund claims for older tax years (before 2025) tied to the casualty loss deduction

If you already filed for 2018–2023 (and possibly 2024 depending on filing timing) and would have claimed the deduction, you may have a new window to seek a refund

In the months after enactment, especially around the next filing season

Many taxpayers would file amended returns to claim the newly restored deduction for prior years

Expect paperwork: documenting the loss and insurance reimbursements, and waiting for IRS processing before any refund arrives

After enactment and before/around the next major filing season

IRS would update instructions and forms related to casualty/theft losses and amended returns

Tax software and preparers would change their guidance; taxpayers should follow updated IRS instructions to avoid delays

Related News

3 articles
Congressman Greg Steube (Press Release)·10 months ago

Rep. Steube and Sen. Moody Introduce Tax Relief for Victims of Crimes, Scams, and Disasters Act

Announces introduction of the bill to restore the casualty/theft loss deduction beyond federally declared disasters and apply it retroactively for 2018–2024.

R+
Congressman Jamie Raskin (Press Release)·10 months ago

Raskin, Colleagues Introduce Bipartisan Legislation to Provide Tax Relief for Scam, Disaster Victims

Describes the bill’s goal of restoring the casualty and theft loss deduction for victims of scams/crimes and non-federally declared disasters, highlighting endorsements.

L+
AICPA & CIMA (Advocacy)·10 months ago

AICPA Comment Letter on Tax Relief for Victims of Crimes, Scams, and Disasters Act

Professional-accounting group support letter backing H.R. 3469/S. 1773 to repeal the suspension of personal casualty loss deductions not tied to federally declared disasters.

C+

Source Information

Document Type

Congressional Bill

Official Title

Tax Relief for Victims of Crimes, Scams, and Disasters Act

Bill NumberS 1773
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(4)
D: 2R: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.