Clinical Trial Compensation – Federal Income Tax Exclusion

Current understanding

The Clinical Trial Modernization Act would exclude up to $2,000 per year in clinical trial participant compensation from federal income tax, alongside non-tax provisions (anti-kickback exemption for trial participation expenses and grants for outreach to underrepresented communities). If enacted, trial participants would pay less federal income tax on stipends and compensation up to the cap, while amounts above $2,000 would remain taxable. Status: introduced legislation.

Evidence log

• 2026-07-23 — A bill to amend the Internal Revenue Code of 1986 to exclude from gross income certain compensation to clinical trial participants, and for other purposes.: S5127 (introduced) would amend the Internal Revenue Code to exclude certain compensation paid to clinical trial participants from gross income, a second legislative vehicle advancing the same exclusion concept (cap/scope not specified in this finding). (novelty: 2)
• 2026-04-29 — Clinical Trial Modernization Act: Clinical Trial Modernization Act (introduced) would exclude up to $2,000 in trial compensation from federal income tax, alongside anti-kickback exemptions for participant expense reimbursements/digital health tools and grants for outreach to underrepresented communities. (novelty: 3)

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