If you’ve been wrongfully convicted, and wrongfully spent years, if not decades, of your life in prison, you may or may not be entitled to compensation after exoneration. Thirty states, the District of Columbia, and the federal government provide some form of compensation to the wrongfully convicted. The conditions under which compensation is paid, and how much is paid, vary widely from state to state. And there are twenty states that provide nothing.
Now imagine this. You’ve been exonerated of a crime you never committed after spending many years in prison. You successfully sue the state for compensation, and then find out the federal government is going to levy income tax on your award. Does that sound right? Of course not, but that’s the way it’s been.
Thankfully, Congress has just passed The Wrongful Convictions Tax Relief Act of 2015, which will eliminate federal income tax on wrongful conviction compensation.
See the story from The Innocence Project here.