H.R. 1306In committeeJobs & the economy
Sexual assault settlement money would be fully tax-free under HR 1306
Data as of July 11, 2026
HR 1306 would exempt all sexual assault and harassment lawsuit payments from federal income, payroll, and withholding taxes.45-second read · 4 questions answered below
Decoded
What does this do?
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.
Who does it affect?
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.
Why does it matter?
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.
Where does it stand?
- Introduced
- House committee — You are here
- House vote
- Senate
- President's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
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Official title
Tax Fairness for Survivors Act
- Introduced:
- February 13, 2025
- Latest action:
- February 13, 2025
Referred to the House Committee on Ways and Means.
Read the official bill on Congress.govMake the call
Three steps: where you stand, your script, the call.