Tax Relief for Coerced Debt Act of 2024

This bill excludes from taxable income any debt discharged due to "coerced indebtedness," directly affecting individuals who incurred debt through identity theft, fraud, economic abuse, or threats (like intimidation or coercion). It defines coerced debt as debt from unknowing identity theft use or abuse that led to a court-ordered debt relief. The law ensures no additional tax reporting is required for this exclusion, simplifying the process for affected individuals. The provision applies to debt discharges occurring after December 31, 2023.