Bill · S. 584· Senate(119-S-584)
Tax Fairness for Survivors Act
- Introduced
- 2/13/2025
- Last activity
- 2/13/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Kirsten Gillibrand
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The Tax Fairness for Survivors Act seeks to amend the Internal Revenue Code of 1986. The bill aims to exclude certain judgments, awards, and settlements from gross income. This exclusion applies specifically to claims involving sexual assault or sexual harassment. It covers various payment types, including back pay, punitive damages, and attorney's fees. The legislation also adjusts several tax-related sections of the code. These changes become effective for taxable years beginning after the Act is enacted.
Yes· 3 of 5
Would women be better off under this?+7
The bill provides specific tax-free protections for those seeking redress for sexual harassment and assault.
Does this narrow the gap between how men and women are treated?+6
The bill provides financial relief specifically for victims of sexual assault and sexual harassment.
Would households on low incomes be better off under this?+5
The bill ensures that settlement awards are not subject to federal income, Social Security, or unemployment taxes.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Exclusion from Gross Income: Individuals receiving payments from sexual assault or sexual harassment claims will not have those amounts counted as gross income under section 139J(a). This includes various forms of payment like lump sums, periodic payments, back pay, or punitive damages (Section 2, subsection a).
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Tax Relief for Victims: The bill expands the definition of excludable amounts to include Social Security taxes, Railroad Retirement Tax, Unemployment Taxes, and impacts Wage Withholding (Sections 2, subsections b, c, d, and e). This ensures that these specific claim payments are not subject to these various taxes.
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Women+7Good For Low Income Households+5Good For Middle Class Households+5
- Social Issues And Justice
- Improves Gender Equality+6
- Economy And Finance
- Reduces Middle Class Taxes+5
- 2/13/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Marsha BlackburnRepublican · Tennessee