Tax Fairness for Abuse Survivors Act

# Tax Fairness for Abuse Survivors Act Summary **What the Bill Would Do** The Tax Fairness for Abuse Survivors Act (HR 6362) would provide tax relief to survivors of abuse by allowing them to exclude certain settlement payments or court awards from their taxable income. Currently, many abuse survivors who receive financial compensation through lawsuits or settlements may be required to pay federal income taxes on these funds. This bill would exempt these payments from taxation, allowing survivors to keep more of their compensation. **Who It Affects and Key Details** The bill would directly benefit abuse survivors who have received or will receive monetary awards related to physical, emotional, or sexual abuse.

By excluding these payments from taxable income, survivors would avoid the additional financial burden of paying taxes on compensation meant to help them recover. The bill was introduced by Representative Nancy Mace (R-SC) in the 119th Congress and is currently being reviewed in committee, meaning it has not yet been voted on by the full House.