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

Tax relief for casualty loss victims

This bill would let you claim the federal personal casualty-loss tax deduction again for taxable years beginning after December 31, 2017. If enacted, that could lower taxable income and increase refunds for people who suffered covered losses. The bill would also give taxpayers who filed returns for years ending before January 1, 2025 extra time to file a refund or credit tied to those suspended casualty deductions. The extra time would run until the regular filing deadline (including extensions) for the tax year that includes the date this bill is enacted. The extra time only covers the part of a claim that comes from the personal casualty loss deduction, and a rule called section 6511(b)(2) would not block these claims.