Income Tax - Subtraction Modification - Losses From Theft or Fraud

HB 1390 allows Maryland residents to deduct certain personal losses from theft or fraud schemes from their state income tax. It specifically covers losses that were deductible under federal tax law before 2018 (when federal limitations on such deductions began), including related expenses or penalties. To claim this deduction, taxpayers must attach a police report confirming the theft or fraud to their tax return. The bill also prevents double-deduction by reducing the state subtraction by any federal deduction claimed for the same loss. This provision takes effect for tax years beginning after December 31, 2024.