Dreier Votes to Approve Tax Relief for
America's Servicemen and Women

November 6, 2003

WASHINGTON, DC - Congressman David Dreier (R-San Dimas) voted last night to approve legislation that provides critical tax relief to members of the military and their families. The Military Family Tax Relief Act of 2003, H.R. 3365, was approved in the House by an overwhelmingly bipartisan margin, 420-0. It has already been approved by the Senate and will now go to President Bush for his signature.

"The men and women of the military and their families sacrifice a great deal for all of us," Dreier said. "This legislation should make their financial burden a little lighter, and their dealings with the IRS a little easier. Especially in the case of a tragic military death, we should do all we can to ease the burden on the family left behind."

Among the benefits provided in the Military Family Tax Relief Act of 2003 are:

• Tax-free Treatment of Death Gratuity Benefits - Under current law, survivors of the military receive a $6,000 death gratuity benefit, but only half of it is tax-free. The bill doubles the death gratuity payment to $12,000 and provides that the full payment be tax-free;

• Tax-Free Treatment of Dependent Care Benefits - Clarifies that dependent care assistance provided under a military dependent care assistance program is free;

• Above-the-Line Deduction for Overnight Travel Expenses of Military Reservists - Under current law, reservists who itemize their expenses may deduct unreimbursed travel expenses to the extent these expenses exceed two percent of adjusted gross income. The bill provides an above-the-line deduction for overnight travel expenses incurred more than 100 miles away from home (including meals, transportation and lodging); and,

• Extension of Victims' Tax Relief to Astronauts Who Die on Space Missions - The bill extends the income and estate tax relief provisions of the Victims of Terrorism Tax Relief Act of 2002 to astronauts who lose their lives in the line of duty.