Allows gross income taxpayers to claim deduction for certain losses for which federal theft loss deduction is allowed.

This bill allows New Jersey resident taxpayers to claim a state tax deduction for losses caused by theft if they are also eligible for a federal theft loss deduction. The amount of the state deduction would match the federal deduction allowed under Internal Revenue Code section 165, covering losses from crimes such as larceny, embezzlement, and fraud. The legislation specifically excludes costs or losses that are already netted against other income categories or used to calculate other tax benefits. By mirroring federal rules, the bill ensures that individuals who can deduct theft losses on their federal returns can receive the same relief on their New Jersey state returns.