hold on there's just too much going on in Congress lmao...
This bill aims to expand tax deductions for certain personal losses.
Mr. Miller (R, OH), Mr. Suozzi (D, NY) introduced the bill.
Introduced in the House, referred to committee.
This bill seeks to make it easier for individuals to claim tax deductions for personal casualty losses by removing current limitations. It also offers specific tax relief for victims of fraud, deceit, or misrepresentation, allowing them more flexibility in when they claim a loss and extending the time to claim tax refunds. Additionally, it waives early withdrawal penalties on retirement funds used to cover fraud losses. Representatives Miller (R-OH) and Suozzi (D-NY) introduced this bipartisan bill, which has been sent to the House Ways and Means Committee for review. This means it has just begun the legislative process and needs committee approval before a full House vote.
Introduced Jan 9, 2026
This bill was introduced in the House of Representatives on January 9, 2026, and sent to the House Ways and Means Committee. For it to become law, the committee must approve it, then the full House must vote on it. If it passes the House, it moves to the Senate for a similar process, and finally to the President for signature.
If this bill becomes law, homeowners who experience personal property losses from events like fires or storms not declared federal disasters could deduct those losses on their taxes. Victims of financial fraud or scams involving deceit could choose to claim their losses in the year the fraud occurred, not just when discovered, and would have more time to file related tax refund claims. Additionally, individuals needing to access retirement savings to cover significant fraud losses would be exempt from the typical 10% early withdrawal penalty, potentially easing financial strain.
Supporters Say
Supporters would likely argue this bill provides crucial tax fairness and relief for individuals facing unexpected personal tragedies or financial exploitation.
Critics Say
Critics might raise concerns about the potential cost to the government or the complexity of verifying certain fraud claims.
The bipartisan sponsorship suggests broad agreement on the need to alleviate financial burdens from disasters and fraud. Proponents would emphasize that current tax law unfairly limits relief for many victims. Opponents might focus on the fiscal implications of expanding deductible losses or the administrative challenges for the IRS in processing more complex fraud-related claims and verifying their validity.