Military ‘Widow’s Tax’ will finally end
A controversial policy that reduces the benefits of military spouses is on the way out.
The National Defense Authorization Act, signed into law by President Donald Trump will eliminate the "widow’s tax".
The tax cuts assistance to surviving military spouses who qualify for benefits under two different military benefit programs.
The two programs are:
- The Department of Defense’s Survivor Benefit Plan (SBP), which allows a military retiree to contribute part of their benefit to ensure that family members receive an annuity of up to 55 percent of their retirement pay when they die.
- The Department of Veterans Affairs’ Dependency and Indemnity Compensation (DIC), which awards around $15,000 a year to survivors of veterans or troops who die of service-related causes.
Military families have been fighting to eliminate the widow’s tax for years, but have not had success until now. President Trump understands and fights for our military and their families.
Signed into law in December 2019, the National Defense Authorization Act eliminates the widow’s tax in phases beginning in 2021. SBP recipients will receive one-third of the DIC offset amount in 2021 and two-thirds in 2022. In 2023, spouses can receive both benefits in full.