WASHINGTON, D.C. – Earlier this week, Senator Thom Tillis (R-NC) co-sponsored bipartisan legislation that would provide tax relief for children receiving benefits who have lost a parent serving in the military.

Simplification of a special tax dating back to 1986 that was intended to stop wealthy parents from sheltering income by shifting it to their children with lower tax rates inadvertently caused higher taxes on military survivor benefits. This bipartisan legislation effectively removes these benefits from the special 1986 tax, resolving the unintended tax treatment of survivor benefits.

“We can never repay Gold Star families for their immense sacrifice or heal the pain of losing a loved one who died protecting the freedoms all of us as Americans enjoy,” said Senator Tillis. “However, we do make a promise that we will take care of them afterwards, and this bipartisan legislation will ensure Gold Star children are taxed at a lower rate.”

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