S. 467 · 119th Congress
End Double Taxation of Successful Consumer Claims Act
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D
Cortez MastoSponsor6 cosponsors · 6 D
5 signed on when it was introduced; the rest joined later. Cosponsors who withdrew aren't shown.
This bill allows an above-the-line tax deduction for court costs and attorney’s fees awarded to an individual as part of a settlement or judgment for a claim related to certain consumer protection violations, subject to limitations. (An above-the-line deduction is subtracted from gross income to calculate adjusted gross income.)
What it does: CRS summary · Introduced in Senate · Feb 6, 2025
End Double Taxation of Successful Consumer Claims Act
This bill allows an above-the-line tax deduction for court costs and attorney’s fees awarded to an individual as part of a settlement or judgment for a claim related to certain consumer protection violations, subject to limitations. (An above-the-line deduction is subtracted from gross income to calculate adjusted gross income.)
Under current law, court costs and attorney’s fees awarded to an individual as part of a settlement or judgment are included in the individual’s gross income, even if such attorney’s fees are contingent upon the outcome of the claim or paid directly to the individual’s attorney. (Some exceptions apply.) However, under current law, an above-the-line tax deduction is allowed for court costs and attorney’s fees awarded in connection with certain employment and civil rights discrimination claims.
This bill expands the above-the-line tax deduction for court costs and attorney’s fees paid in connection with certain discrimination claims to include court costs and attorney’s fees awarded as part of a settlement or judgment in a claim for
- unfair, deceptive, or abusive trade or credit practices;
- harm to an individual by a seller or provider of property, services, securities or other investments, money, or credit; or
- certain other consumer protection violations.
The deduction is allowed to the extent that such amounts are includible in the individual's gross income.
Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov
About this bill and sources
Official title: End Double Taxation of Successful Consumer Claims Act
Latest action (Feb 6, 2025): Read twice and referred to the Committee on Finance.
Policy area: Taxation · Origin: Senate · Introduced: Feb 6, 2025
Official page on Congress.gov · Bill text (GovInfo) · Status record (XML)
No recorded floor vote found.