Compensation for Being Wrongly Imprisoned
On average, people who are wrongfully accused and imprisoned spend around fourteen years behind bars. Fortunately, due to the evolution of DNA testing, exonerations are on the rise and people who have been sentenced to years in prison now have the opportunity to regain their freedom.
Congress has also taken steps in this direction and passed certain bills so that the individuals are compensated for the harm suffered. The compensation that these individuals receive is fully exempt from federal taxes.