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Tax Exemption for Sexual Assault and Harassment Settlements and Awards

This bill excludes from federal gross income any amounts received as judgments, awards, or settlements related to claims of sexual assault or sexual harassment. This change ensures that survivors can keep the full amount of their compensation, including back pay and punitive damages, without having to pay federal income tax, Social Security, or railroad retirement taxes on those funds.
Key points
Settlement money is tax-free: Payments received from judgments, awards, or settlements for sexual assault or sexual harassment claims will not be counted as taxable income.
Increased financial relief for survivors: The exclusion applies to all types of payments, including punitive damages and compensation for lost wages (back pay/front pay), maximizing the financial benefit for survivors.
Broad coverage: The exemption covers disputes involving nonconsensual sexual acts and conduct alleged to be sexual harassment under federal, tribal, state, or local law.
Tax relief extends beyond income tax: The amounts are also excluded from Social Security, Railroad Retirement, and unemployment taxes.
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Additional Information
Print number: 118_S_5566
Sponsor: Sen. Gillibrand, Kirsten E. [D-NY]
Process start date: 2024-12-17
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tax Fairness for Survivors Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5566.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-12-17.

What are the main provisions?

Key points include:

  • Settlement money is tax-free: Payments received from judgments, awards, or settlements for sexual assault or sexual harassment claims will not be counted as taxable income.
  • Increased financial relief for survivors: The exclusion applies to all types of payments, including punitive damages and compensation for lost wages (back pay/front pay), maximizing the financial benefit for survivors.
  • Broad coverage: The exemption covers disputes involving nonconsensual sexual acts and conduct alleged to be sexual harassment under federal, tribal, state, or local law.
  • Tax relief extends beyond income tax: The amounts are also excluded from Social Security, Railroad Retirement, and unemployment taxes.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Gillibrand, Kirsten E. [D-NY].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

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