Bills · S 467
IN COMMITTEE· 119TH CONGRESS
Senate BillS 467Taxation
End Double Taxation of Successful Consumer Claims Act
INTRO FEB 6· LAST ACTION FEB 6
READING
3MIN
COSPONSORS
6
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it addresses a perceived unfairness in the tax system for individuals who win consumer protection lawsuits. Without this change, a person could receive an award, pay a large percentage of it in attorney fees, and then still be taxed on the *entire* award amount, effectively reducing their actual compensation significantly. This can make pursuing legitimate claims less financially viable or appealing for victims of consumer fraud or abuse.
If this bill becomes law, it would ensure that individuals are not "double taxed" on their legal awards, meaning they wouldn't pay income tax on the portion of their award that covers their lawyer's fees and costs. This change could encourage more consumers to seek justice against companies that violate consumer protection laws, knowing they can keep a larger share of their deserved compensation. If it doesn't pass, the current tax treatment would continue, potentially limiting the net benefit of successful consumer claims for many people.
KEY PROVISIONS
3AI-extractedPROVISION 01
Allows an "above-the-line" deduction for attorney fees and costs related to consumer claim awards.
This means individuals can subtract these legal expenses from their income before calculating adjusted gross income, reducing their taxable income regardless of whether they itemize deductions.
PROVISION 02
Broadly defines "consumer protection violation" to include many federal laws (e.g., Truth in Lending Act, Fair Debt Collection Practices Act) and any federal, state, or local law addressing unfair, deceptive, or abusive trade/credit practices.
This ensures a wide range of consumer lawsuits would qualify for the tax deduction, making it applicable to many types of consumer harm.
PROVISION 03
The deduction applies to attorney fees and court costs paid during taxable years ending after the bill's enactment date, for judgments or settlements occurring in those same taxable years.
This sets the effective date for when the new tax treatment would begin, clarifying which awards and fees are eligible.
SPONSORSHIP
1 + 6
D· Nevada
YRS IN OFFICE
9
BILLS LED
122
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 6 REP 0 IND 0
ACTION TIMELINE
2 EVENTSFEB 6
Introduced in Senate
FEB 6
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 467
Congress119th
StatusIn Committee
IntroducedFeb 6, 2025
Last actionFeb 6, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED FEB 6, 2025
Senate BillS 467Taxation
End Double Taxation of Successful Consumer Claims Act
INTRODUCED FEB 6, 2025· LAST ACTION FEB 6, 2025
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
6
COMPLEXITY
Moderate
