This bill amends the Internal Revenue Code of 1986 to provide a significant tax exemption for individuals. It establishes a new section, 139J, which excludes from gross income any amounts received as judgments, awards, or settlements stemming from claims of sexual assault or sexual harassment. These excludable amounts encompass a broad range of payments, including back pay, front pay, punitive damages, and reimbursement of attorney's fees, whether received as a lump sum or periodic payments. The legislation clarifies that this exclusion applies to claims involving nonconsensual sexual acts or contact, as defined by federal or similar tribal, state, or local law, and to conduct constituting sexual harassment. Furthermore, the bill makes conforming amendments to ensure these payments are also exempt from Social Security taxes , Railroad Retirement taxes , Unemployment taxes , and wage withholding . The Secretary of the Treasury is directed to issue regulations to implement these provisions and distinguish these specific payments from other settlement amounts.