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Tax Exemption for Compensation Received by Human Trafficking Survivors.

This law introduces a crucial change to tax rules, ensuring that financial compensation received by survivors of human trafficking is exempt from federal income tax. This means that civil damages, restitution, or other monetary awards granted in connection with human trafficking cases will not be reduced by taxation. The goal is to maximize the financial recovery available to survivors.
Key points
Money received as compensation for human trafficking (including civil damages and criminal restitution) will not be counted as taxable gross income.
Survivors of human trafficking will retain the full amount of their awarded financial recompense, significantly increasing their net financial aid.
The changes apply to taxable years beginning after the date the Act is signed into law.
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Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_6227
Sponsor: Rep. Schneider, Bradley Scott [D-IL-10]