Survivor Justice Tax Prevention Act

Excludes most damages paid to a person because of any sexual act or sexual contact from federal taxable income, similar to how damages for physical injuries are treated. Punitive damages remain taxable.

It also makes it easier to qualify for the exclusion by accepting a court judgment or settlement agreement that states the damages are for a sexual act or sexual contact, and by clarifying that not having medical records alone cannot disqualify someone. Treasury, with the Department of Justice and other agencies, must run a public awareness campaign to inform taxpayers and practitioners about the change. The bill sets effective‑date rules tied to when judgments or agreements occur.