This bill, known as the "Tax Fairness for Survivors Act," proposes to amend the Internal Revenue Code of 1986 to provide a significant tax exemption for victims of sexual assault and harassment. Its primary purpose is to exclude from an individual's gross income any judgments, awards, or settlements received in connection with claims of sexual assault or sexual harassment. This ensures that survivors are not taxed on compensation intended to address their suffering and losses. The legislation specifically defines these excludable amounts to include a broad range of payments, such as backpay, frontpay, punitive damages, and reimbursement of attorney's fees, whether received as a lump sum or periodic payments. It applies to claims involving alleged nonconsensual sexual acts or sexual contact, as well as conduct constituting sexual harassment under federal, tribal, state, or local law. Furthermore, the bill extends this tax exemption to cover Social Security, Railroad Retirement, Unemployment, and wage withholding taxes, providing comprehensive relief for survivors.
This bill, known as the "Tax Fairness for Survivors Act," proposes to amend the Internal Revenue Code of 1986 to provide a significant tax exemption for victims of sexual assault and harassment. Its primary purpose is to exclude from an individual's gross income any judgments, awards, or settlements received in connection with claims of sexual assault or sexual harassment. This ensures that survivors are not taxed on compensation intended to address their suffering and losses. The legislation specifically defines these excludable amounts to include a broad range of payments, such as backpay, frontpay, punitive damages, and reimbursement of attorney's fees, whether received as a lump sum or periodic payments. It applies to claims involving alleged nonconsensual sexual acts or sexual contact, as well as conduct constituting sexual harassment under federal, tribal, state, or local law. Furthermore, the bill extends this tax exemption to cover Social Security, Railroad Retirement, Unemployment, and wage withholding taxes, providing comprehensive relief for survivors.