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The Tax Fairness for Survivors Act amends the Internal Revenue Code to exclude from federal income taxation any judgments, awards, and settlements received in connection with sexual assault or sexual harassment claims. The exclusion applies to all forms of compensation including back pay, front pay, punitive damages, and payments made to resolve or settle claims, whether paid as lump sums or periodic payments. The bill also exempts these amounts from Social Security taxes, railroad retirement taxes, unemployment taxes, and wage withholding requirements.
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