{"id":"342afc62-4ce9-4914-936a-dde5bc4b764a","feedVisibility":"normal","congress":119,"billType":"s","billNumber":467,"title":"End Double Taxation of Successful Consumer Claims Act","displayTitle":"End Double Taxation of Successful Consumer Claims Act","abstract":"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.","displaySummary":"<p><strong>YVN Summary</strong></p>\n\n<p>Consumers who win or settle a federal, state, or local consumer protection claim could deduct their attorney fees and court costs \"above the line\" on their federal taxes, meaning before adjusted gross income is calculated. Today, plaintiffs in many consumer cases owe income tax on the full award even though a big share goes straight to their lawyer. The deduction would cover claims under more than a dozen named laws (including the Truth in Lending Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Consumer Product Safety Act, and Servicemembers Civil Relief Act) plus any federal, state, or local consumer protection law. It would apply to attorney fees paid in tax years ending after the bill's enactment.</p>","status":"COMMITTEE_CONSIDERATION","topics":["ECONOMY","TECHNOLOGY","GOVERNMENT_OPERATIONS"],"introducedAt":"2025-02-06T00:00:00+00:00","latestActionAt":"2025-02-06T00:00:00+00:00","congressGovUrl":"https://www.congress.gov/bill/119th-congress/senate-bill/467","accountabilityFlags":{"average_household_impact":["↓ Consumer-claim tax bills — Above-the-line deduction allowed for attorney fees and court costs"]},"tldr":"Lets consumers who win protection-law claims deduct attorney fees before taxable income is calculated, so lawyers' cut isn't taxed as their own gain.","summaryStandard":null,"flagExplainers":{},"flagValence":{},"needsResummary":false,"displaySummaryHtml":null,"rawStatusText":"Read twice and referred to the Committee on Finance.","chamber":"SENATE","policyArea":"Taxation","legislativeSubjects":[],"lawStatus":null,"lawNumber":null,"latestActionText":"Read twice and referred to the Committee on Finance.","latestTextVersion":"Introduced in Senate","textVersionUsed":null,"dateAdded":"2026-05-20T00:00:00+00:00","summarizedAt":null,"recordId":"342afc62-4ce9-4914-936a-dde5bc4b764a","feedIdentityKey":"119/s/467","websiteBillId":"S-467","yourvoiceSummary":"Consumers who win or settle a federal, state, or local consumer protection claim could deduct their attorney fees and court costs \"above the line\" on their federal taxes, meaning before adjusted gross income is calculated. Today, plaintiffs in many consumer cases owe income tax on the full award even though a big share goes straight to their lawyer. The deduction would cover claims under more than a dozen named laws (including the Truth in Lending Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Consumer Product Safety Act, and Servicemembers Civil Relief Act) plus any federal, state, or local consumer protection law. It would apply to attorney fees paid in tax years ending after the bill's enactment.","updatedAt":"2026-10-25T03:41:31.934029+00:00"}