Human Trafficking Survivor Tax Relief Act
Summary
The "Human Trafficking Survivor Tax Relief Act" aims to amend the Internal Revenue Code of 1986 by exempting restitution and civil damages awarded to human trafficking survivors from gross income. This exemption applies to monetary awards received under sections 1593 and 1595 of Title 18, United States Code. The bill intends to provide financial relief to survivors, ensuring they are not taxed on compensation received for the harms they have suffered.
Expected Effects
The act would change the tax code to exclude certain monetary awards from being considered taxable income for human trafficking survivors. This would effectively increase the net amount of compensation received by survivors. The change would apply to taxable years beginning after the enactment of the Act.
Potential Benefits
- Provides financial relief to human trafficking survivors by exempting restitution and civil damages from federal income tax.
- Ensures that survivors receive the full amount of compensation awarded to them, without tax deductions.
- Offers additional support to vulnerable populations, aiding in their recovery and reintegration into society.
- Incentivizes reporting of human trafficking crimes by ensuring survivors are not penalized with tax burdens on awarded compensation.
- Simplifies the tax filing process for survivors by excluding these specific income sources.
Potential Disadvantages
- May slightly reduce federal tax revenue, although the impact is likely minimal due to the relatively small number of recipients.
- Could potentially create complexities in tax administration if not clearly defined and implemented.
- Might require additional guidance from the IRS to ensure proper compliance and avoid misinterpretations.
- There are no readily apparent disadvantages to the American people.
- There are no readily apparent disadvantages to the American people.
Constitutional Alignment
The bill aligns with the Constitution's broad goals of establishing justice and promoting the general welfare, as stated in the Preamble. By providing financial relief to human trafficking survivors, the bill supports vulnerable populations and helps them rebuild their lives. There are no apparent conflicts with specific articles or amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).