Bill > HR1306

This bill, known as the "Tax Fairness for Survivors Act," proposes to amend the Internal Revenue Code to exclude from gross income any payments received related to sexual assault or sexual harassment claims. Specifically, the bill would exempt individuals from paying federal income taxes on judgments, awards, and settlements connected to sexual assault or sexual harassment, including backpay, frontpay, punitive damages, attorney's fees, and settlement payments. This tax exemption would apply to claims involving nonconsensual sexual acts, sexual contact, or sexual harassment under federal, tribal, state, or local laws. The bill also modifies various tax-related sections to ensure that these payments are not considered taxable income for Social Security, railroad retirement, unemployment, and wage withholding purposes. The changes would take effect for taxable years beginning after the date of the Act's enactment, providing financial relief and support for survivors by ensuring they do not have to pay taxes on compensation received for these traumatic experiences.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1306/all-info