‘Widows’ Tax’ Affects 55,000 Military Widows

The ‘widows’ tax’ says that the surviving spouse of a soldier who dies in service can’t collect both survivor’s benefits and the annuity benefits the couple purchased from the Defense Department at retirement. Instead, the survivor benefit is subtracted from the annuity payment.

Congress has attempted several times to make things right for the 55,000 affected widows, but they’ve only made things more complicated. Currently, for the widows to collect both benefits, they must remarry at age 57 or older. Those who remarry earlier, as well as those who never remarry, are subject to the ‘widows’ tax.’

The service member paid for the annuity benefit with premiums and the survivor’s benefit with his life. Now his loved ones aren’t being provided for in the way he intended. Representative Joe Wilson (R-SC) thinks Congress needs to get their priorities straight. “Are we going to show our appreciation for surviving spouses and children…or spend money otherwise?”

Kimberly Hefling, PROMISES, PROMISES: ‘Widows’ tax’ Lingers, The A.P., Feb. 9, 2011.

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.