Senate OKs tax break for Gold Star child benefits
WASHINGTON, D.C. - Children whose parents died while serving in the military are getting a long-overdue tax break.
U.S. Sen. Pat Toomey (R-Pa.) announced Tuesday morning that relief package for Gold Star Families has unanimously passed the Senate. The plan would taxthe child’s survivor benefits at the child’s individual tax rate rather than the much-higher estate and trust rate or their parent’s rate.
The increase stemmed from the 2017 Tax Cuts and Jobs Act. Lawmakers on both sides of the aisle are calling the hike a mistake and are apologizing.
The reductions are retroactive, and are now expected to give thousands of dollars back to those families for daily living expenses and even college, Toomey said.
“To lose a big chunk of that to taxes that were never intended to be taken out was a real hardship to these kids,” said Toomey, who is an original co-sponsor of the fast-tracked legislation. “I’m glad we were able to correct it.”
U.S. Sen. Bob Casey (D-Pa.) was among the Democrats who originally co-sponsored the bill. The bill now heads to the U.S. House where it could pass as soon as Wednesday.