Congress Passes Ayotte, Shaheen Bill Ensuring Survivor Benefits Not Taxed

May 15, 2015



The U.S. Senate has passed legislation that makes sure death benefits paid to families of public safety officer who are killed in the line of duty are not subject to federal income tax.

U.S. Sens. Kelly Ayotte and Jeanne Shaheen introduced the bill and say it's now headed to the president for his signature.

Federal survivor benefits are not subject to federal taxation but Ayotte's office says New Hampshire law enforcement personnel were concerned about an ambiguity in the law regarding the tax treatment of state-based survivor benefits programs.

The two senators said they introduced the Don't Tax Our Fallen Public Safety Heroes Act in response to those concerns. The legislation clarifies that both federal and state death benefits for public safety officers are exempt from federal income tax.