Representative Gwen Moore Applauds House Passage of Her Survivor Justice Tax Prevention Act

Representative Gwen Moore Applauds House Passage of Her Survivor Justice Tax Prevention Act

Today, during Sexual Assault Awareness Month, the House voted overwhelmingly to pass Rep. Moore's Survivor Justice Tax Prevention Act. This legislation, co-led with Rep. Lloyd Smucker, will amend the nation's tax code to ensure survivors of sexual abuse and unwanted and illegal sexual contact do not have to pay taxes on settlement income when they prevail legally against their abuser.

"I am beyond thrilled that the House passed the Survivor Justice Tax Prevention Act. As we recognize Sexual Assault Awareness Month, it is a timely moment to advance this legislation. I thank Rep. Smucker for his partnership on this bipartisan bill. This marks a major step toward securing tax parity for survivors of abuse," said Rep. Gwen Moore (WI-04).

"Thank you to my House colleagues for supporting this commonsense bill that ensures survivors of sexual assault receive justice-not a tax bill from the IRS," said Rep. Lloyd Smucker (PA-11). "I am proud to have worked with Rep. Moore to provide survivors the justice, dignity, and support they deserve. Physical injury doesn't always reflect the unimaginable trauma survivors endure, and it shouldn't be required for them to receive the compensation they deserve. I urge my Senate colleagues to take up this meaningful measure and stand with survivors."

Under current law, damages awarded for personal physical injuries or physical sickness are excluded from gross income for federal tax purposes. However, to qualify for this exemption, the IRS requires evidence of a "physical injury," interpreting the law as requiring visible harm -such as bruising, cuts, or bleeding. This "observable harm" standard can be especially difficult and unjust in cases of sexual assault or sexual contact, where such physical injuries may not be visible or may have already healed.

Representatives Moore and Smucker's legislation makes a targeted change to fix the disparity in current law by aligning the IRS tax exemption with the federal criminal code's definitions of sexual act and sexual contact. This would extend tax-free treatment to survivors of sexual assault and unwanted sexual contact without requiring them to demonstrate visible physical injuries.