Survivor Justice Tax Prevention Act

The Survivor Justice Tax Prevention Act amends the federal tax code to exclude damages received for sexual acts or sexual contact from a person's taxable income, provided the damages are not punitive. This change directly affects survivors of sexual violence who receive financial settlements or court awards by ensuring they do not owe taxes on these specific funds. The bill establishes that if a legal decision or agreement explicitly states the money is compensation for such an act, that statement serves as credible evidence for tax purposes, simplifying the process for taxpayers. Additionally, it requires the Treasury Department to work with other federal agencies to inform the public about this new tax exclusion.