WASHINGTON, D.C. – U.S. Rep. Terri Sewell introduced Gold Star Family Tax Relief Act (H.R. 2481) today to reverse a provision in the 2018 Republican tax bill that increased the tax rate on survivor benefits for Gold Star families.

“The brave men and women who voluntarily put their lives on the line to protect us all are true American heroes, and Gold Star families have made tremendous sacrifices so the rest of us can continue to enjoy the freedoms we often take for granted. They shouldn’t have to make even more sacrifices when filing their taxes,” said Rep. Sewell, a member of the House Ways & Means Committee. “The Republican tax law lumps Gold Star children who receive survivor benefits into a bracket known as the ‘kiddie tax’ at 37 percent, much higher than their previous tax rate. So, today, I am introducing legislation to reverse the tax on Gold Star children’s survivor benefits. Simply put, it’s the right thing to do.”

A surviving spouse cannot receive both Department of Defense (DoD) and Veterans Affairs (VA) benefits simultaneously in full. As a result, Gold Star parents often sign their DoD benefits over to their children. The 2018 Republican 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. The Gold Star Family Tax Relief Act would reverse the provision in the Republican tax bill.

Sewell has also co-sponsored bipartisan legislation to eliminate the so-called “Widow’s Tax,” a provision that prevents as many as 65,000 surviving military spouses nationwide from receiving their full DoD and VA survivor benefits.

The Gold Star Family Tax Relief Act is available here. And video is available here.