Seniors are more likely to be harmed by theft loss

A report recently published by the U.S. Senate Special Committee on Aging argues that those most at risk of being victimized by fraud, seniors, are also likely to be harmed by provisions contained in the Tax Cuts and Jobs Act (TCJA). The TCJA modified the traditional casualty and theft loss deduction so that only losses from federally declared disasters and business transactions qualified. According to the Federal Trade Commission, Americans were defrauded of $10 billion in 2023. In a press release, committee Chair Bob Casey (D-PA) stated that Congress should be protecting fraud victims, “not adding insult to injury by forcing them to pay taxes on their stolen savings.”