S. 1370 – Gold Star Family Tax Relief Act

AI-Generated Summary

Updated April 14, 2026 at 4:54 AM UTC

The Gold Star Family Tax Relief Act changes the tax code so that certain survivor benefits paid to children of deceased service members or veterans are counted as earned income for the kiddie‑tax rules. By treating these benefits as earned income, the children may be taxed at lower rates, providing tax relief to Gold Star families. The change applies to tax years beginning after December 31, 2017.

Key Provisions

Amends the Internal Revenue Code (section 1(g)(4)) to add a new subparagraph that defines survivor benefits—paid under Department of Defense or Veterans Affairs programs to a child who is a survivor of a deceased service member or veteran and already included in the child’s gross income—as earned income for kiddie‑tax purposes.
Specifies that the amendment takes effect for taxable years starting after December 31, 2017.

Legislative Activity

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5 earlier actions

SenateFloor Latest Action

Ordered held at desk by unanimous consent.

May 21, 2019

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SenateIntro Referral

Introduced in Senate

May 8, 2019

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

May 8, 2019

SenateCommittee

Senate Committee on Finance discharged by Unanimous Consent.(consideration: CR S2985)

Finance Committee

May 21, 2019

SenateDischarge

Senate Committee on Finance discharged by Unanimous Consent. (consideration: CR S2985)

Finance Committee

May 21, 2019

SenateFloor

Passed Senate without amendment by Unanimous Consent. (text: CR S2985)

May 21, 2019

SenateFloor

Ordered held at desk by unanimous consent.

May 21, 2019

Floor Debate

1 member

What members said about S. 1370 on the floor

1 Republican

Sen. Mitch McConnellR-KY · May 21, 2019

Madam President, I ask unanimous consent that the Committee on Finance be discharged from further consideration of S. 1370 and the Senate proceed to its immediate consideration. I ask unanimous…

Bill Text

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Engrossed in SenateIssued May 21, 2019

116th CONGRESS

1st Session

S. 1370

AN ACT

To amend the Internal Revenue Code of 1986 to treat certain military survivor benefits as earned income for purposes of the kiddie tax.

1.

Short title

This Act may be cited as the Gold Star Family Tax Relief Act.

2.

Certain military survivor benefits treated as earned income for kiddie tax

(a)

In general

Section 1(g)(4) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(D)

Treatment of certain military survivor benefits

For purposes of this subsection, any benefit under laws administered by the Secretary of Defense or the Secretary of Veterans Affairs which—

(i)

is received by a child by reason of the child being the survivor of a deceased member of the Armed Forces or of a deceased veteran, and

(ii)

is included in the gross income of such child,

shall be considered earned income of such child.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

Passed the Senate May 21, 2019.

Secretary