H.R. 1306 Introduced Taxation

Tax Fairness for Survivors Act

To amend the Internal Revenue Code of 1986 to exclude from gross income any judgments, awards, and settlements with respect to sexual assault or sexual harassment claims, and for other purposes.

  1. Introduced
  2. Committee
  3. Passed House
  4. Passed Senate
  5. To President
  6. Became law
Sponsor Rep. Frankel, Lois [D-FL-22] Introduced February 13, 2025 Cosponsors 5 (3 R, 2 D) Latest action February 13, 2025

Summary

Tax Fairness for Survivors Act 
This bill excludes certain payments related to sexual assault or sexual harassment claims from gross income for federal tax purposes.
Specifically, the bill excludes from gross income amounts received by an individual from a judgment, award, or settlement of a claim (including backpay, frontpay, punitive damages, attorney’s fees, or any payments made to release, resolve, or settle a claim) related to sexual harassment or a nonconsensual sexual act or sexual contact. Further, under the bill, such amounts are not wages or compensation and, thus, not subject to certain payroll taxes (Social Security, railroad retirement, and unemployment insurance).
Under current law, amounts received from a judgment, award or settlement of a claim may be excluded from gross income if attributable to a personal physical injury or physical sickness. However, under current law, compensatory and other amounts received from a judgment, award or settlement unrelated to a personal physical injury or physical sickness generally are included in gross income. (Some exceptions apply.)

Summary by the Congressional Research Service, Library of Congress.

Congress.gov

Actions

  1. Feb 13, 2025 Referred to the House Committee on Ways and Means.
  2. Feb 13, 2025 Introduced in House

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