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

This bill aims to restore the federal income tax deduction for personal casualty losses to its pre-2017 state, allowing taxpayers to deduct losses from events like theft, fire, or other casualties, regardless of whether they occurred in a federally declared disaster area. It achieves this by striking a specific paragraph from the Internal Revenue Code that had previously limited these deductions. The legislation makes this reinstatement retroactive, applying to taxable years beginning after December 31, 2017 . Furthermore, it provides an extended period for taxpayers to file claims for credit or refund for overpayments attributable to these personal casualty loss deductions, specifically for returns filed for taxable years ending before January 1, 2025, where the deduction was previously unavailable.