WASHINGTON – Rep. Jim McGovern (MA-02) Rep. Jamie Raskin (MD-08) introduced a bill in the House of Representatives on Thursday, the Tax Relief for Victims of Crimes, Scams, and Disasters Act, that would reinstate a tax deduction available to victims of scams, thefts, accidents and other personal casualty losses.
The bill would reinstate a deduction eliminated in the 2017 Tax Cuts and Jobs Act signed into law by then-President Donald Trump.
McGovern’s office pointed to reporting by the Washington Post in December that highlighted the effects on individuals who were required to pay taxes on money stolen or lost to fraud.
McGovern also pointed to unexpected disasters, like the crumbling of home foundations because the cement contained pyrrhotite, a mineral that causes concrete to crumble when it’s exposed to oxygen and water. Several of these incidents have occurred in Massachusetts.
Crumbling foundations have caused massive financial and emotional burden for homeowners across Central and Western Massachusetts,” said Rep. McGovern. “I’ve visited many homes where families were suddenly left with exorbitant costs to ensure their home is safe. This legislation would provide immediate tax relief for these homeowners, as well as victims of scams and others suffering losses at no fault of their own.”
Rep. McGovern and Rep. Gaskin’s bill would bring relief to taxpayers experiencing hardships by reinstating the tax deduction for personal casualty losses that was available prior to the 2017 Tax Cuts and Jobs Act. Crucially, the bill would allow victims who suffered losses after passage of the 2017 Trump tax law to claim the deduction on prior year’s taxes.
