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S467119th CongressWALLET
End Double Taxation of Successful Consumer Claims Act
Sponsored By: Senator Cortez Masto, Catherine [D-NV]
Introduced
Summary
Creates an above-the-line deduction for attorney fees and costs tied to consumer protection claim awards. It also defines which laws and types of claims count as consumer protection violations for that deduction, covering a wide set of federal, state, and local rules and common-law claims.
Show full summary
- Consumers and households: Allows taxpayers to claim an above-the-line deduction for attorney fees and court costs paid in connection with consumer protection judgments or settlements, so those legal costs are deducted before adjusted gross income is calculated.
- Plaintiffs in consumer cases: Covers a long list of claim types, including lending and housing rules, debt collection, credit reporting, electronic transfers, product safety, warranties, servicemember protections, unfair or deceptive practices, and other federal, state, or local consumer transaction laws.
- Timing and scope for filers: The deduction would apply to fees and court costs paid during taxable years ending after enactment for judgments or settlements that occur in those years.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Deduct legal fees for consumer claims
This bill would let you deduct attorney fees and court costs you paid for covered consumer protection claims as an above-the-line deduction. That means you would get the tax benefit even if you do not itemize. The deduction would apply only to fees and costs paid during taxable years ending after enactment, and only for judgments or settlements that occur in those same taxable years. A qualifying claim would be one alleging a "consumer protection violation" under the listed federal laws or under any federal, State, or local law or common law that enforces consumer protection or regulates consumer transactions.
Sponsors & CoSponsors
Sponsor
Cortez Masto, Catherine [D-NV]
NV • D
Cosponsors
Sen. Murray, Patty [D-WA]
WA • D
Sponsored 2/6/2025
Sen. Shaheen, Jeanne [D-NH]
NH • D
Sponsored 2/6/2025
Sen. Kaine, Tim [D-VA]
VA • D
Sponsored 2/6/2025
Sen. Bennet, Michael F. [D-CO]
CO • D
Sponsored 2/6/2025
Sen. Booker, Cory A. [D-NJ]
NJ • D
Sponsored 2/6/2025
Sen. Welch, Peter [D-VT]
VT • D
Sponsored 2/10/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov