Income Tax - Subtraction Modification - Losses From Theft or Fraud

HB 124 allows Maryland taxpayers to subtract certain personal casualty losses from their state income tax if those losses involve theft or fraud targeting retirement plan assets. It specifically applies to losses that were deductible under federal tax law before 2018, requiring taxpayers to attach documentation proving the theft/fraud occurred and that the assets were retirement plan property. The bill prevents double-deduction by reducing the state subtraction if the taxpayer already claimed a federal deduction for the same loss. This change affects Maryland residents who lost retirement savings due to theft or fraud schemes, effective for tax years beginning after December 31, 2025.