Maryland HB124 modifies the income tax to allow a subtraction for personal casualty losses from theft or fraud.

Maryland HB124 modifies the state income tax to allow a subtraction for personal casualty losses related to theft or fraud. This includes losses that were deductible under the Internal Revenue Code before January 1, 2018, and expenses or penalties incurred due to the theft or fraud. To qualify, taxpayers must attach a police report and evidence of impacted qualified retirement plan assets to their tax return. The subtraction is reduced by any deduction related to the theft or fraud. The changes take effect July 1, 2026, for taxable years beginning after December 31, 2025.

Maryland HB124 modifies the income tax to allow a subtraction for personal casualty losses from theft or fraud.

Maryland HB124 modifies the state income tax to allow a subtraction for personal casualty losses related to theft or fraud. This includes losses that were deductible under the Internal Revenue Code before January 1, 2018, and expenses or penalties incurred due to the theft or fraud. To qualify, taxpayers must attach a police report and evidence of impacted qualified retirement plan assets to their tax return. The subtraction is reduced by any deduction related to the theft or fraud. The changes take effect July 1, 2026, for taxable years beginning after December 31, 2025.