Gold Star Family to Pay Hundreds More in Taxes Under New Tax Code
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Usually, Welch says they owed about $200 each. But under this year's new tax code, the family was surprised to see the total due at nearly $1,100 for each of her boys.
"This is just crazy that this is happening. That children, I mean mine are 9 and 11, but children even younger than that are being taxed this exorbitant amount money. And I mean these are families that are not making billions in money each year. They're making what they need to survive," said Welch.
Her CPA explained it was due to changes with the Kiddie Tax. Until now the taxable portion of her boys' benefits was taxed at the same rate she was, which as a single stay at home mom fell in the lowest threshold.
But under the new tax code, their benefits are treated the same as a trust fund or estate tax. For her boys, that means a rate of 35 percent.
"To me it almost feels like a punishment. Like we honor the sacrifice your dad made, but now you owe us all this money. It just really seems confusing to me," said Welch.