Congress Doubles Troops' Death Benefit from $ 6,000 to $ 12,000 !!!!

[MORTARDUDE]

Congress Doubles Troops' Death Benefit

Baltimore Sun

November 6, 2003


By MATT KELLEY

Associated Press Writer

WASHINGTON -- As the U.S. death toll rises in Iraq, Congress has approved doubling the death benefit for the families of fallen troops and more tax breaks for military personnel involved in the war against terrorism.

Wednesday's 420-0 vote in the House sends the package of enhanced military benefits to President Bush just a few days ahead of Veterans Day.

"It's long overdue," said Rep. Sam Johnson, R-Texas. "It's been a long time since 9-11, and we are trying to take care of our military."

Under the bill, families of soldiers killed while on active duty would get a $12,000 tax-free payment, up from the current $6,000.

The increased death gratuity, meant to offset the cost of a funeral and other immediate expenses, combines with benefits already available to the survivors of soldiers killed in war. Families typically get payment from a $250,000 life insurance policy.

Families do not pay federal income taxes for the year the service member died. Surviving spouses, while still unmarried, and surviving children get a monthly dependency compensation payment. They are also eligible for full Social Security death and survivors' benefits.

"We made modest improvements to help the families of the members of the military who have given the supreme sacrifice," Rep. Amo Houghton, R-N.Y., said.

Active duty and reserve personnel on standby and on their way to war would benefit from the bill's other changes, which lower taxes on military benefits and expenses.

Soldiers deployed away from home would find it easier to take advantage of tax breaks on capital gains when they sell their houses. The bill suspends a rule that requires homeowners to live in the house during two of the past five years to qualify for the tax break. Lawmakers said military men and women on the move often cannot meet that requirement.

National Guard and Reserve forces who travel overnight for training could use a new tax deduction for travel and lodging costs. Those who do not itemize their tax deductions, and instead use a standard deduction, could still use the benefit. Soldiers in contingency operations that support combat zones also would get an extension to file their tax returns already available to soldiers in combat.

The bill ensures that child care and homeowners assistance provided by the military are untaxed benefits. Families with children bound for military academies would be allowed to use savings held in tax-advantaged education accounts without penalty.

Other changes relieve the families of astronauts who died in the space shuttle Columbia from income and estate taxes. It also allows the government to lift the tax-exempt status of groups deemed terrorist organizations.

The bill balances new tax cuts with an extension of customs fees, so it has no cost to the U.S. Treasury.

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