This bill is currently in the early stages of the legislative process after being sent to the Senate Committee on Finance for review. It is actively moving forward, but no further hearings or votes have been scheduled yet. There is no companion bill currently linked to this legislation.
Legislative Progress
Senate
House
President
Law
Unlikely to pass
This bill currently lacks bipartisan support and faces a difficult path. Tax changes are usually only passed as part of much larger, negotiated tax packages.
How we got here
This bill’s path across every version that has carried it.
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Reintroduced
Reintroduced from S. 3459 (118th), which died when its Congress ended.
This bill allows people who win consumer protection lawsuits to deduct their lawyer's fees and court costs from their taxes. Currently, some winners are taxed on the full award amount, even the part that goes straight to their attorney.
The change would apply to cases involving credit reporting errors, unfair debt collection, and deceptive lending. It covers many federal and state laws that protect people from being cheated by businesses or banks.
By allowing this deduction, the bill aims to make it easier for regular people to hold companies accountable. It prevents a situation where a person wins a case but ends up with a huge tax bill that eats up their portion of the settlement.
The rule would apply to any legal fees or court costs paid after the bill becomes law. It specifically targets above-the-line deductions, which means taxpayers can claim them even if they do not itemize their taxes.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
2 milestones2 actions
Feb 6, 2025Senate
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Feb 6, 2025
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes, news coverage, or related bills recorded for this bill yet.
Source Information
Document Type
Congressional Bill
Official Title
End Double Taxation of Successful Consumer Claims Act
Bill NumberS 467
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.
