Senators offer tax bill aimed at helping first responders

Senators offer tax bill aimed at helping first responders
© Greg Nash

A bipartisan group of senators offered legislation this week to ensure that first responders' injury-related compensation is tax exempt.

The introduction of the bill by Sens. Steve DainesSteven (Steve) David DainesSenate Democrats block resolution supporting ICE Republican bill aims to deter NATO members from using Russian pipeline GOP senators introduce resolution endorsing ICE MORE (R-Mont.), Christopher CoonsChristopher (Chris) Andrew CoonsAnti-Trump protesters hold candlelight vigil by White House Hillicon Valley: EU hits Google with record B fine | Trump tries to clarify Russia remarks | Sinclair changing deal to win over FCC | Election security bill gets traction | Robocall firm exposed voter data Overnight Defense: More Trump drama over Russia | Appeals court rules against Trump on transgender ban | Boeing wins Air Force One contract | Military parade to reportedly cost M MORE (D-Del.) and Bob CaseyRobert (Bob) Patrick CaseyOvernight Health Care: Trump officials explore importing prescription drugs | Key ObamaCare, drug pricing regs under review | GOP looks to blunt attacks on rising premiums | Merck to lower some drug prices Dems pressure GOP to take legal action supporting pre-existing conditions Congress should build upon the ABLE Act, giving more Americans with disabilities access to financial tools MORE Jr. (D-Pa.) coincides with National Police Week.

“If these men and women are injured while performing their life-saving work, the last thing we should do is tax the benefits that their families receive," Coons said in a news release.

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Under IRS guidance issued in 1985, service-related disability compensation isn't subject to federal income taxes. The senators' bill would codify the guidance's principles, since many first responders and some IRS auditors aren't aware of it.

“These brave men and women put their life on the line for our safety. It is our duty to make sure they are not unfairly taxed or inappropriately audited by the IRS for the sacrifices they’ve made on our behalf,” Daines said.

The legislation also would allow injury-related compensation to remain tax-exempt when first responders hit the retirement age of 65, a change from current policy.