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HB0124 • 2026

Income Tax - Subtraction Modification - Losses From Theft or Fraud

Income Tax - Subtraction Modification - Losses From Theft or Fraud

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Delegate Vogel
Last action
2026-01-15
Official status
In the House - Hearing 1/29 at 1:00 p.m.
Effective date
2026-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Income Tax - Subtraction Modification - Losses From Theft or Fraud

Allowing, subject to certain limitations, a subtraction modification under the Maryland income tax for certain personal casualty losses of certain retirement assets from theft or a fraud scheme; and applying the Act to taxable years beginning after December 31, 2025.

What This Bill Does

  • Allowing, subject to certain limitations, a subtraction modification under the Maryland income tax for certain personal casualty losses of certain retirement assets from theft or a fraud scheme; and applying the Act to taxable years beginning after December 31, 2025.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-15 House

    Hearing 1/29 at 1:00 p.m.

  2. 2026-01-14 House

    First Reading Ways and Means

  3. 2025-08-13 House

    Pre-filed

  4. Maryland General Assembly

    Text - First - Income Tax - Subtraction Modification - Losses From Theft or Fraud

Official Summary Text

Allowing, subject to certain limitations, a subtraction modification under the Maryland income tax for certain personal casualty losses of certain retirement assets from theft or a fraud scheme; and applying the Act to taxable years beginning after December 31, 2025.

Current Bill Text

Read the full stored bill text 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0124*

HOUSE BILL 124
Q3 6lr0686
HB 1390/25 – W&M (PRE–FILED)
By: Delegate Vogel
Requested: August 13, 2025
Introduced and read first time: January 14, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Income Tax – Subtraction Modification – Losses From Theft or Fraud 2

FOR the purpose of allowing, subject to certain limitations, a subtraction modification 3
under the Maryland income tax for certain personal casualty losses related to theft 4
or a fraud scheme; and generally relating to a subtraction modification under the 5
Maryland income tax for personal casualty losses related to theft or a fraud scheme. 6

BY repealing and reenacting, without amendments, 7
Article – Tax – General 8
Section 10–208(a) 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2025 Supplement) 11

BY adding to 12
Article – Tax – General 13
Section 10–208(dd) 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2025 Supplement) 16

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18

Article – Tax – General 19

10–208. 20

(a) In addition to the modification under § 10 –207 of this subtitle, the amounts 21
under this section are subtracted from the federal adjusted gross income of a resident to 22
determine Maryland adjusted gross income. 23

2 HOUSE BILL 124

(DD) (1) IN THIS SUBSECTION, “PERSONAL CASUALTY LOSS” MEANS LOSS 1
OF PROPERTY THAT: 2

(I) IS NOT CONNECTED WITH A TRADE OR BUSINESS OR A 3
TRANSACTION ENTERED INTO FOR PROFIT; 4

(II) CONSISTS OF ASSETS IN A QUALIFIED RETIREME NT PLAN 5
UNDER THE INTERNAL REVENUE CODE; AND 6

(III) ARISES FROM THEFT OR A FRAUD SCHEME. 7

(2) THE SUBTRACTION ALLOW ED UNDER SUBSECTION (A) OF THIS 8
SECTION INCLUDES: 9

(I) THE AMOUNT OF ANY PE RSONAL CASUALTY LOSS OF A 10
TAXPAYER RELATED TO A THEFT OR FRAUD SCHEME THAT OCCURRED DURING THE 11
TAXABLE YE AR THAT WAS ALLOWED AS A DEDUCTION UNDER § 165 OF THE 12
INTERNAL REVENUE CODE BEFORE JANUARY 1, 2018; AND 13

(II) ANY EXPENSES OR PENA LTIES INCURRED DURIN G THE 14
TAXABLE YEAR RELATED TO THE THEFT OR FRAUD SCHEME. 15

(3) TO QUALIFY FOR THE SU BTRACTION ALLOWED UNDER THIS 16
SUBSECTION, THE TAXPAYER SHALL ATTACH TO THE TAXPAYER’S TAX RETURN: 17

(I) A POLICE REPORT ESTA BLISHING THAT THE TH EFT OR 18
FRAUD SCHEME OCCURRED; AND 19

(II) ADDITIONAL EVIDENCE OF THE IMPACTED QUAL IFIED 20
RETIREMENT PLAN ASSETS. 21

(4) FOR ANY T AXABLE YEAR , THE SUBTRACTION ALLO WED UNDER 22
THIS SUBSECTION SHAL L BE REDUCED BY THE AMOUNT OF ANY DEDUCT ION FOR 23
THAT TAXABLE YEAR THAT IS: 24

(I) RELATED TO THE THEFT OR FRAUD SCHEME; 25

(II) ALLOWED UNDER § 165 OF THE INTERNAL REVENUE CODE; 26
AND 27

(III) ATTRIBUTABLE TO A TA XPAYER’S QUALIFIED RETIREMENT 28
PLAN LOSSES. 29

HOUSE BILL 124 3

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 2