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End Double Taxation of Consumer Claim Awards

This act aims to make it easier for consumers to recover money from successful lawsuits or settlements related to consumer protection violations. It allows attorney fees and court costs associated with such cases to be deducted from income before taxes, meaning citizens will pay less tax on their awards.
Key points
Deductible legal costs: If you win a consumer case or reach a settlement, you can deduct attorney fees and court costs from your income before taxes are calculated.
Lower taxes on awards: This deduction will reduce the amount of income subject to tax, meaning you keep more of your award money.
Covers various consumer issues: The changes apply to a wide range of consumer protection violations, including credit fraud, real estate issues, unfair trade practices, and other actions harming consumers.
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Status: Introduced
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Additional Information
Print number: 119_S_467
Sponsor: Sen. Cortez Masto, Catherine [D-NV]
Process start date: 2025-02-06