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119-hr-10891119th CongressWALLET

Scams Tax Relief Act

Sponsored By: Representative Morelle, Joseph D. [D-NY-25]

Introduced

Summary

Broaden tax relief for victims of scams by letting them deduct theft losses from fraud without itemizing. This bill would treat thefts caused by fraud, deceit, or misrepresentation like disaster losses for tax purposes and add a new above-the-line deduction so victims can claim those losses whether or not they itemize.

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  • Families and individuals who suffer theft from fraud or misrepresentation would be able to claim those losses as deductible thefts. The change applies to losses sustained after enactment.
  • Taxpayers who take the standard deduction could still get relief because the bill creates a new above-the-line deduction for these theft losses.
  • The Secretary of the Treasury would define what counts as “theft involving fraud, deceit, or misrepresentation,” which determines who qualifies.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax break for victims of fraud

If enacted, taxpayers who lose money to theft by fraud, deceit, or misrepresentation would be able to deduct that loss. The bill would let you claim the deduction even if you do not itemize. The Treasury secretary would define what counts as theft by fraud. The change would apply to losses sustained after the date of enactment.

Sponsors & CoSponsors

Sponsor

Morelle, Joseph D. [D-NY-25]

NY • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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