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Tax Fairness for Survivors Act
3/12/2025, 3:08 PM
Summary of Bill HR 1306
The bill is designed to provide support and protection for survivors of sexual assault and harassment by ensuring that they are not financially burdened by taxes on any compensation they receive as a result of their experiences. This includes not only monetary awards from legal proceedings, but also settlements reached outside of court.
In addition to excluding these types of compensation from gross income, the bill also includes provisions for the confidentiality of settlements and awards related to sexual assault and harassment claims. This is intended to protect the privacy and well-being of survivors, allowing them to seek justice without fear of public scrutiny. Overall, Bill 119 hr 1306 seeks to provide financial relief and support for survivors of sexual assault and harassment, while also promoting accountability and justice for those who commit these harmful acts.
Congressional Summary of HR 1306
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.)
Read the Full Bill
Current Status of Bill HR 1306
Bipartisan Support of Bill HR 1306
Total Number of Sponsors
1Democrat Sponsors
1Republican Sponsors
0Unaffiliated Sponsors
0Total Number of Cosponsors
1Democrat Cosponsors
0Republican Cosponsors
1Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 1306
Primary Policy Focus
Alternate Title(s) of Bill HR 1306
Comments
Magdalena Hoyle
1 year ago
So excited about this bill! It could really make a difference for so many people. Can't wait to see how it all plays out. #excited #change #HRBill1306
