Representative Greg Steube (R-FL) and Senator Ashley Moody (R-FL) are introducing legislation to offer tax relief to victims of cybercrime, robbery, or natural disasters.
Under current law, tax deductions related to disasters or theft only apply in a federally designated disaster area. This tightens previous laws related to income loss that existed before federal income taxes.
As a result, Rep. Steube and Sen. Moody's Tax Relief for Victims of Crimes, Scams, and Disasters Act restores the original laws allowing for deductions outside of federally designated disaster areas and retroactively applies to taxes paid between 2018 and 2024.
"Hardworking Americans, especially seniors, who fall victim to scams, cybercrime, or disasters should not be forced to pay taxes on income they no longer have," Rep. Steube said in his press release, adding, "Victims of crime, calamity, and fraud deserve peace of mind as they work to regain their footing. This bill protects Americans who have lost everything by restoring fairness and common sense to the tax code."
Similarly, Sen. Moody said, "As hurricane season is around the corner, I will continue supporting policies that protect Floridians from scammers and fraudsters."
"My Tax Relief for Victims of Crimes, Scams and Disasters Act will provide commonsense tax relief for victims, often seniors, who have been financially devastated by scams, crimes, or destruction from disasters," she continued. "This legislation will help folks get back on their feet when they experience hardship. When I was Attorney General of Florida, I made sure to fight for Floridians who fell victim to scams, and I will continue bringing this fight to D.C. so that folks have the protections they need."
In December, Steube's Federal Disaster Tax Relief Act of 2023, which he introduced with Senator Rick Scott (R-FL), was signed into law by President Joe Biden, which similarly provided tax relief to victims of hurricanes and other disasters by exempting them from paying taxes on federal aid received to recover from the disasters.
