Senate Passes Tax Breaks for Soldiers

WASHINGTON -- New tax breaks for military personnel, including expanded benefits for reservists and the families of fallen soldiers, passed the Senate on Monday, The Associated Press reported.

The bill doubles the death gratuity paid to the families of soldiers killed in active duty to $12,000 and makes the entire payment tax-free. That item is identical to a bill the House passed unanimously last week.

The Senate expanded on the House's legislation by adding additional tax breaks for soldiers and their families. The tax changes include:

• Suspension of residency requirements for active duty personnel who sell their houses. The change ensures that soldiers deployed away from home do not have to pay capital gains taxes on home sales.
• Reservists would be allowed to claim a new deduction for travel expenses.
• Ensures that child care provided to soldiers' families is not treated as a taxable benefit.
• Balances new tax cuts with an extension of customs fees, eliminating any cost to the Treasury.

-- NYSSCPA.org News Staff

Posted on 11/5/03