Human Trafficking Survivor Tax Relief Act

This bill exempts certain payments received by human trafficking survivors from federal income tax. Specifically, it removes federal income tax liability for restitution or civil damages awarded under federal laws targeting human trafficking (18 U.S.C. §§ 1593 and 1595). These payments include compensatory damages, statutory damages, and restitution ordered in criminal cases. The law directly affects survivors who receive these specific awards, ensuring they keep the full amount without tax deductions. The change takes effect for taxable years after the bill's enactment.