Gold Star widow "shocked" by new tax bill on sons' survivor benefits

[Eugene]

Related thread: The White House Hung up on Gold Star Widow Who Called to Discuss Taxes

______________________________________________________________________

Source: CBS News

By JANET SHAMLIAN CBS NEWS April 25, 2019, 6:59 PM

Gold Star widow "shocked" by new tax bill on sons' survivor benefits

Last Updated Apr 25, 2019 9:07 PM EDT

Coronado, Calif. — Many Americans were shocked by their tax bills this month. The new law was especially costly for our nation's Gold Star families, who saw the taxes owed on their survivor benefits skyrocket.

Theresa Jones has been a single mom to Anthony and Hunter for almost six years. Her husband Landon, a Navy chopper pilot, died in the Red Sea during Operation Enduring Freedom in 2013.

-snip-

The boys each received about $15,000 in survivor benefits last year. Jones was hit with a tax bill of $5,400 for them, up from $1,100 from the previous year.

"That's how they have a roof over their head. That's how they have food in their mouths. That's why the lights are on right now. That's how we survive every month," Jones said.

Because a surviving spouse can't receive both Veteran Affairs and Defense Department benefits simultaneously in full, Gold Star parents often sign the taxable DOD benefits over to their children. But the new tax law lumps Gold Star children into a bracket known as the "kiddie tax" at 37 percent, much higher than their previous tax rate.

-snip-

Read more: https://www.cbsnews.com/news/gold-star-widow-shocked-by-new-tax-bill-on-her-sons-survivor-benefits/

[underpants]

1. Wow. Just wow.

[Ohiogal]

2. Simply appalling.

How does any veteran support this horror show?

[Chin music]

3. Really good question and it should be asked using this as an example on tv...OFTEN.

Armed Services Radio and military indoctrination make uninformed soldiers vote gop, The LAST people who have their best interests in mind.

[Roland99]

4. But...but...but....Republicans support our troops!!

[mahatmakanejeeves]

5. I saw that on the TV this morning. What a disgrace. NT

[bluescribbler]

6. Support the troops!

But tax the sh#t out of their families.

[BamaRefugee]

7. Right Wingers love the fetus, hate the children.

[sakabatou]

8. And the Treasury Department says it is "evaluating what can be done to solve this issue."

Yeah, right. They're just going to pass the buck onto the next president.

[Honeycombe8]

9. That's outrageous. The Repubs hurt Veterans repeatedly, and STILL most of them support Repubs.

I just don't get it.

[dem4decades]

10. Did she send the check to the Trump kids? They got a tax break didn't they?

[progree]

11. Yes, Kiddie Tax went way up under the TCJA - here are the old and new rates

Last edited Fri Apr 26, 2019, 06:36 PM - Edit history (2)

The boys each received about $15,000 in survivor benefits last year. Jones was hit with a tax bill of $5,400 for them, up from $1,100 from the previous year.

That's an increase from $1,100 to $5,400, a 4.9-fold increase.

Because a surviving spouse can't receive both Veteran Affairs and Defense Department benefits simultaneously in full, Gold Star parents often sign the taxable DOD benefits over to their children. But the new tax law lumps Gold Star children into a bracket known as the "kiddie tax" at 37 percent, much higher than their previous tax rate

It didn't all get taxed at 37%, but the kiddie tax rates are definitely way higher under the TCJA.

2017 Kiddie Tax (Pre-TCJA) {1}
First $1,050 0%
Next $1,050 child's rate
Over $2,100 parent's rate (probably 15% at most in this case)

2018 Kiddie Tax (TCJA) {2}
First $2,250 10%
$2,550 - 9,150 24%
$9,150 - 12,500 35%
Over $12,500 37%

{1} AAII Journal December 2017, p. 17
{2} AAII Journal December 2018, p.17

[citizen blues]

12. Unacceptable!

Another reason the GOP needs to be relegated to the history books as an evolutionary u-turn!