Fraud victims can deduct losses on taxes without extra rules.
H.R. 10891 — Scams Tax Relief Act · Filed by Joseph Morelle (D-NY) · Introduced Oct 22, 2026 · Referred to committee
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What it does
This bill lets people deduct money lost to fraud or scams. Right now, fraud losses face limits: a $100 floor per loss. They also face a 10% income threshold. This bill removes both limits for fraud losses only. Fraud victims can deduct the full loss without itemizing.
Who it affects
People who lost money to investment scams, identity theft, or fraud-based theft. They will owe less in taxes after their loss.
One thing to notice
The Treasury Department will write rules to define which losses count as fraud theft.
From the analysis of the bill text, linked under Primary records below.
Where it stands
- Oct 22, 2026 — Introduced · Congress.gov: “Introduced in House”
- Oct 22, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Words to know
- deduct — Subtract money from your income before you pay taxes on it.
- itemizing — List each deduction separately instead of taking one standard deduction.
- fraud — Deliberate deceit or misrepresentation to trick someone out of money.
- threshold — A starting point or limit that must be reached or passed.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,588 characters) on Oct 28, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,595 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-28.
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