I 
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 settle-
ments with respect to sexual assault or sexual harass-
ment claims, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Fairness for Sur-
vivors Act’’. 
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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 chap-
ter 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 SEX-
UAL 
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 vic-
tim 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. 
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‘‘(b) REGULATIONS.—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 con-
nection with a claim described in subsection (a) from other 
amounts received.’’. 
(b) SOCIAL SECURITY TAXES.—Section 3121(a) of 
such Code is amended by striking ‘‘or’’ at the end of para-
graph (22), by striking the period at the end of paragraph 
(23) and inserting ‘‘; or’’, and by inserting after para-
graph (23) the following new paragraph: 
‘‘(24) any amount received which is excludable 
from the gross income of the employee under section 
139J.’’. 
(c) RAILROAD RETIREMENT TAX.—Section 3231(e) 
of such Code is amended by adding at the end the fol-
lowing 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.’’. 
(d) UNEMPLOYMENT TAXES.—Section 3306(b) of 
such Code is amended by striking ‘‘or’’ at the end of para-
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graph (19), by striking the period at the end of paragraph 
(20) and inserting ‘‘, or’’, and by inserting after para-
graph (20) the following new paragraph: 
‘‘(21) any amount received which is excludable 
from the gross income of the employee under section 
139J.’’. 
(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.’’. 
(f) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of the Internal 
Revenue Code of 1986 is amended by inserting before the 
item relating to section 140 the following new item: 
‘‘Sec. 139J. Amounts received as judgments, awards, and settlements with re-
spect to sexual assault or sexual harassment claims.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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