Giving Gold Star Families a Tax Break

Press Release:

Many Gold Star families were hit with an unexpected increase in their taxes this year, as a result of the 2018 tax law.  

Gold Star families have made tremendous sacrifices so the rest of us can continue to enjoy the freedoms we often take for granted, and they shouldn’t have to make even more sacrifices when filing their taxes.

A surviving spouse cannot receive both Veteran Affairs and Defense Department benefits simultaneously in full. So, Gold Star parents often sign their DOD benefits over to their children. But President Trump’s signature tax law, the 2018 Tax Cuts and Jobs Act, redefined Gold Star children’s benefits, lumping them into a bracket known as the "Kiddie Tax" that is subject to a 37 percent tax rate. That increased rate has cost Gold Star families thousands of dollars in more taxes.  

Click to watch video of Rep. Sewell discussing the Gold Star Family Tax Relief Act

When our service members pay the ultimate sacrifice while serving our nation, it’s our duty ensure their loved ones get the economic security they deserve.

So, I introduced the Gold Star Family Tax Relief Act to reverse the tax on Gold Star children’s survivor benefits. And I have already co-sponsored legislation that would allow a surviving spouse to receive both their VA and DOD benefits simultaneously, in full.

Simply put, it’s the right thing to do.

As always, if you want to stay up-to-date on events I’m holding in your area, be sure to sign up for my e-newsletter. You can also share a message on a different topic through my website.

I look forward to hearing from you,

Terri A. Sewell
Alabama’s 7th Congressional District