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

This bill brings back the federal tax deduction for personal casualty losses, like losses from crimes, scams, or disasters, returning it to how it worked before the 2017 tax law change. It applies starting with tax years after December 31, 2017, so people can count eligible losses from recent years, not just going forward .

It also gives taxpayers extra time to file for a credit or refund if they missed out on this deduction in past years because it was suspended. For returns filed for years ending before January 1, 2025, the deadline to claim is pushed to the normal due date of the return for the year that includes the date this bill becomes law, and a usual refund limit rule will not apply to these claims. This extension only covers overpayments tied to the personal casualty loss deduction .

• Who is affected: People with personal casualty losses (such as those linked to crimes, scams, or disasters)
• What changes: The deduction is reinstated; extra time is allowed to claim past refunds tied to that deduction; a typical refund cap won’t apply to these specific claims
• When: Applies to tax years beginning after December 31, 2017; special claim window applies to years ending before January 1, 2025, with claims due by the normal due date for the return in the year this becomes law