'Widow's Tax' axed | Military News | Military Families:
"As President Trump signed the National Defense Authorization Act Friday night, a 40-year battle to repeal the military “widow’s tax” came to an end.
The “widow’s tax” was a longstanding policy oversight that affected over 65,000 military survivors.
When a service member dies while on active duty or from a military-related illness their families may be eligible for both the Survivor Benefit Plan (SBP) & Dependency and Indemnity Compensation (DIC).
Because of concurrent receipt laws (provisions to avoid double-dipping in government benefits), for every dollar paid out via the DIC, one dollar was deducted or “offset” from the SBP insurance payment.
This offset cost families roughly $11,000 annually.
Not only have these families lived through the nightmare of losing a spouse or loved one, they have had to fight to stay afloat both emotionally and financially..."
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