Tax Fairness for Survivors Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 1306 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 1306 To amend the Internal Revenue Code of 1986 to exclude from gross income any judgments, awards, and settlements with respect to sexual assault or sexual harassment claims, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 13, 2025 Ms. Lois Frankel of Florida (for herself and Ms. Tenney) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to exclude from gross income any judgments, awards, and settlements with respect to sexual assault or sexual harassment claims, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Tax Fairness for Survivors Act''. SEC. 2. EXEMPTING FROM FEDERAL INCOME TAXATION PAYMENTS ALLOCABLE TO SEXUAL ASSAULT OR SEXUAL HARASSMENT CLAIMS. (a) In General.--Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: ``SEC. 139J. AMOUNTS RECEIVED AS JUDGMENTS, AWARDS, AND SETTLEMENTS WITH RESPECT TO SEXUAL ASSAULT OR SEXUAL HARASSMENT CLAIMS. ``(a) In General.--In the case of an individual, gross income shall not include any amount received as a judgment, award, or settlement (including backpay, frontpay, punitive damages, reimbursement of attorney's fees, or any payments made in connection with a release of claims or to resolve or settle claims) whether by lump sum or periodic payments from-- ``(1) a claim involving the individual as the victim of an alleged nonconsensual sexual act or sexual contact, as such terms are defined in se