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S. 5395

BillFederalSenateIn Committee
A bill to amend the Internal Revenue Code of 1986 to exclude from gross income any compensatory damages with respect to sexual assault claims, and for other purposes.
About This Bill
Committee
Latest Action · September 15, 2026
Read twice and referred to the Committee on Finance.
Introduced
September 15, 2026
Cosponsors (1)
0D 1R
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Summary

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The Survivor Justice Tax Prevention Act would amend federal tax law to exclude compensatory damages from sexual assault claims from a survivor's taxable income. Currently, while damages for physical injuries are typically tax-free, survivors of sexual assault have sometimes faced tax bills on settlement or judgment payments. This bill expands the tax exclusion to cover all compensatory damages related to sexual acts or sexual contact, regardless of whether there are medical records or visible injuries. The legislation would also make it easier for survivors to prove their damages are tax-exempt by treating statements in legal agreements or court decisions as credible evidence. The bill takes effect for payments received from court decisions and settlements made after it becomes law, with a Treasury Department outreach program to inform the public about this tax benefit.

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