Bill > HB1390

This bill amends Maryland state income tax law to allow taxpayers to claim a subtraction modification for personal casualty losses resulting from theft or fraud, subject to specific conditions. Under the proposed legislation, a "personal casualty loss" is defined as damage to property that is not associated with a business or profit-making transaction, which occurs through theft or a fraud scheme. Taxpayers can subtract from their federal adjusted gross income the amount of losses related to such theft or fraud that were previously deductible under federal tax code section 165 before January 2018, as well as any expenses or penalties incurred due to the scheme. To qualify for this subtraction, taxpayers must attach a police report to their tax return proving the theft or fraud occurred. The subtraction amount will be reduced by any deductions for the same theft or fraud already allowed under federal tax law. The bill will take effect on July 1, 2025, and apply to taxable years beginning after December 31, 2024, providing tax relief for Maryland residents who have suffered financial losses due to criminal activities.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1390?ys=2025RS