Bill > S584

This bill aims to provide tax relief for survivors of sexual assault and sexual harassment by amending the Internal Revenue Code to exclude certain payments from gross income taxation. Specifically, the bill would exempt any amount received as a judgment, award, or settlement related to sexual assault or sexual harassment claims, including back pay, front pay, punitive damages, attorney's fees, and settlement payments. This exemption applies to claims involving nonconsensual sexual acts or sexual contact, as defined in federal law, as well as claims of sexual harassment under federal, tribal, state, or local laws. The bill also makes corresponding amendments to various tax provisions, including Social Security taxes, railroad retirement taxes, unemployment taxes, and wage withholding rules, to ensure that these payments are not considered taxable income. The changes would take effect for taxable years beginning after the date of the Act's enactment, providing survivors with financial relief by ensuring that compensation received for these traumatic experiences is not subject to income tax.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/584/all-info