PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
Congressional Research Service
Version 00 · Introduced in House · Feb 13, 2025
Tax Fairness for Survivors Act
This bill excludes certain payments related to sexual assault or sexual harassment claims from gross income for federal tax purposes.
Specifically, the bill excludes from gross income amounts received by an individual from a judgment, award, or settlement of a claim (including backpay, frontpay, punitive damages, attorney’s fees, or any payments made to release, resolve, or settle a claim) related to sexual harassment or a nonconsensual sexual act or sexual contact. Further, under the bill, such amounts are not wages or compensation and, thus, not subject to certain payroll taxes (Social Security, railroad retirement, and unemployment insurance).
Under current law, amounts received from a judgment, award or settlement of a claim may be excluded from gross income if attributable to a personal physical injury or physical sickness. However, under current law, compensatory and other amounts received from a judgment, award or settlement unrelated to a personal physical injury or physical sickness generally are included in gross income. (Some exceptions apply.)
People & committees
Rep. Frankel, Lois [D-FL-22] · D–FL
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Jun 11, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-13 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed Tax Fairness for Survivors Act would let individuals exclude payments resolving sexual assault or sexual harassment claims from income subject to federal income tax. The exclusion would cover judgments, awards, and settlements, including backpay, frontpay, punitive damages, and attorney-fee reimbursements. It would apply to claims involving alleged misconduct under the laws specified in the bill.
This Act may be cited as the Tax Fairness for Survivors Act.
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)
(1) a claim involving the individual as the victim of an alleged nonconsensual sexual act or sexual contact, as such terms are defined in section 2246 of title 18, United States Code, or similar applicable Tribal, State, or local law, including when the victim lacks capacity to consent, or (2) a claim involving conduct that is alleged to constitute sexual harassment of the individual under applicable Federal, Tribal, State, or local law.
The proposed exclusion would cover sexual assault claims involving alleged nonconsensual sexual acts or contact, including when the person lacks capacity to consent. It would use definitions in the cited federal law or similar applicable Tribal, state, or local law. Sexual harassment claims would qualify when the conduct is alleged to constitute sexual harassment of the individual under applicable federal, Tribal, state, or local law.
(1) a claim involving the individual as the victim of an alleged nonconsensual sexual act or sexual contact, as such terms are defined in section 2246 of title 18, United States Code, or similar applicable Tribal, State, or local law, including when the victim lacks capacity to consent, or (2) a claim involving conduct that is alleged to constitute sexual harassment of the individual under applicable Federal, Tribal, State, or local law.
Eligible payments could arrive all at once or over time. The proposed exclusion expressly includes backpay, frontpay, punitive damages, attorney-fee reimbursements, and payments connected with releasing, resolving, or settling claims.
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
The Secretary would be required to issue regulations and guidance, including rules distinguishing payments connected with qualifying claims from other payments.
The Secretary shall prescribe such regulations and other guidance as are necessary to carry out the purposes of section, including regulations and other guidance to distinguish amounts received in connection with a claim described in subsection (a) from other amounts received.
Under its Social Security taxes provision, the bill would add an exclusion to Internal Revenue Code section 3121(a) for employee payments qualifying for the new income exclusion.
(b) Social security taxes Section 3121(a) of such Code is amended by striking or at the end of paragraph (22), by striking the period at the end of paragraph (23) and inserting ; or, and by inserting after paragraph (23) the following new paragraph: (24) any amount received which is excludable from the gross income of the employee under section 139J.
For railroad retirement tax, qualifying employee payments would be excluded from the definition of compensation.
(c) Railroad retirement tax Section 3231(e) of such Code is amended by adding at the end the following new paragraph: (13) Amounts received as judgments, awards, and settlements with respect to sexual assault or sexual harassment claims The term compensation shall not include any amount received which is excludable from the gross income of the employee under section 139J.
Under its unemployment taxes provision, the bill would add an exclusion to Internal Revenue Code section 3306(b) for employee payments qualifying for the new income exclusion.
(d) Unemployment taxes Section 3306(b) of such Code is amended by striking or at the end of paragraph (19), by striking the period at the end of paragraph (20) and inserting , or, and by inserting after paragraph (20) the following new paragraph: (21) any amount received which is excludable from the gross income of the employee under section 139J.
Under its wage withholding provision, the bill would add an exclusion to Internal Revenue Code section 3401 for employee payments qualifying for the new income exclusion.
(e) Wage withholding Section 3401 of such Code is amended by striking or at the end of paragraph (22), by striking the period at the end of paragraph (23) and inserting , or, and by inserting after paragraph (23) the following new paragraph: (24) any amount received which is excludable from the gross income of the employee under section 139J.
The proposed changes would apply to taxable years beginning after the date of enactment.
(g) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
The supplied action snapshot, updated June 11, 2026, records introduction in the House and referral to the House Committee on Ways and Means on February 13, 2025.
Source snapshot updated 2026-06-11T14:52:58Z. 2025-02-13: Referred to the House Committee on Ways and Means. 2025-02-13: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-13. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified after reviewing the complete supplied introduced-text version. This conclusion does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified after reviewing the complete supplied introduced-text version. This conclusion does not establish absence in other versions or accompanying materials, and the supplied text alone cannot establish formal earmark status.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No qualifying narrow carve-out, special exemption, or preferential exception beyond the bill's ordinary coverage of its intended beneficiaries was identified after reviewing the complete supplied introduced-text version. This conclusion does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Jun 11, 2026. How PlainBill uses AI