[20200115]IN11112_儿童税和军人遗属福利.pdf

CRS INSIGHT Prepared for Members and Committees of Congress INSIGHTINSIGHTi i The Kiddie Tax and Military Survivors Benefits Sean Lowry Analyst in Public Finance Kristy N. Kamarck Specialist in Military Manpower Updated January 15, 2020 Some military families discovered that they owed higher taxes for 2018 and 2019 on distributions from their military survivors benefits than they had in previous years. This change in tax treatment was related to temporary changes to the “kiddie tax” in the 2017 tax revision (P.L. 115-97). However, Congress enacted language in the Further Consolidated Appropriations Act, 2020 (P.L. 116-94) that repealed those temporary changes to the kiddie tax beginning in 2020. In addition, P.L. 116-94 enables taxpayers to retroactively elect to be taxed as if the kiddie tax changes in P.L. 115-97 did not apply in 2018 and 2019 (by filing an amended tax return). Military Survivor Benefits to Children Retired servicemembers may elect to provide their spouses and/or children with up to 55% of their pension following the members death as part of a program called the Survivor Benefit Plan (SBP) (10 U.S.C. 1448). In 2001, as part of P.L. 107-107, Congress expanded elig