A bill 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.

Bill 118 s 5566, also known as the "Sexual Assault Survivors Tax Relief Act of 2021," aims to make changes to the Internal Revenue Code of 1986. The main purpose of this bill is to exclude any judgments, awards, and settlements related to sexual assault or sexual harassment claims from being included in an individual's gross income for tax purposes.

This means that individuals who receive financial compensation as a result of a sexual assault or harassment claim would not have to pay taxes on that money. The bill seeks to provide relief to survivors of sexual violence by ensuring that they are not financially burdened by having to pay taxes on compensation they receive for the harm they have suffered.

In addition to excluding these types of payments from gross income, the bill also includes provisions for the treatment of attorney fees related to sexual assault or harassment claims. Specifically, it allows for a deduction of attorney fees and court costs related to these claims, further providing financial relief to survivors. Overall, Bill 118 s 5566 aims to support and protect survivors of sexual assault and harassment by ensuring that they are not taxed on the compensation they receive for the harm they have endured. This bill seeks to provide much-needed financial relief to survivors and promote justice and healing for those who have experienced these traumatic events.