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Related: About this forumGold Star widow "shocked" by new tax bill on sons' survivor benefits
Related thread: The White House Hung up on Gold Star Widow Who Called to Discuss Taxes
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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-
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/
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Gold Star widow "shocked" by new tax bill on sons' survivor benefits (Original Post)
Eugene
Apr 2019
OP
Really good question and it should be asked using this as an example on tv...OFTEN.
Chin music
Apr 2019
#3
And the Treasury Department says it is "evaluating what can be done to solve this issue."
sakabatou
Apr 2019
#8
That's outrageous. The Repubs hurt Veterans repeatedly, and STILL most of them support Repubs.
Honeycombe8
Apr 2019
#9
Did she send the check to the Trump kids? They got a tax break didn't they?
dem4decades
Apr 2019
#10
underpants
(182,877 posts)1. Wow. Just wow.
Ohiogal
(32,057 posts)2. Simply appalling.
How does any veteran support this horror show?
Chin music
(23,002 posts)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
(53,342 posts)4. But...but...but....Republicans support our troops!!
mahatmakanejeeves
(57,600 posts)5. I saw that on the TV this morning. What a disgrace. NT
bluescribbler
(2,122 posts)6. Support the troops!
But tax the sh#t out of their families.
BamaRefugee
(3,487 posts)7. Right Wingers love the fetus, hate the children.
sakabatou
(42,174 posts)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
(37,648 posts)9. That's outrageous. The Repubs hurt Veterans repeatedly, and STILL most of them support Repubs.
I just don't get it.
dem4decades
(11,304 posts)10. Did she send the check to the Trump kids? They got a tax break didn't they?
progree
(10,918 posts)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
(570 posts)12. Unacceptable!
Another reason the GOP needs to be relegated to the history books as an evolutionary u-turn!