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H.R. 1306119th CongressIn committeeLatest action Feb 13, 2025Decoded by AI · checked against the record
The plain-language version leads. The official text is always the reference.
HR 1306 would exempt all sexual assault and harassment lawsuit payments from federal income, payroll, and withholding taxes.
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HR 1306 would remove federal income taxes from any money received through a court judgment or settlement in a sexual assault or sexual harassment case. The exemption covers lump-sum and structured payments alike, including back pay, punitive damages, and attorney's fees. It would also block Social Security, Medicare, unemployment, and wage withholding taxes from applying to those payments.
The bill affects people who receive money from sexual assault or sexual harassment judgments or settlements. It also affects employers and defendants who make those payments, since they would no longer be required to withhold taxes from them.
Under current law, some money received from these cases can be subject to federal taxation depending on the type of claim. If enacted, the change would take effect starting with the tax year after the bill is signed into law.
AI-drafted summary. Verify it against the official text before you act on it. Read the official bill on Congress.gov
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
Latest action: — Referred to the House Committee on Ways and Means.