Washington (March 31, 2003) - The Armed Forces Tax Fairness Act of 2003 passed the Senate on a bipartisan vote of 97 to 0. 

The measure would remedy specific tax problems for personnel in the uniformed services and foreign service, including establishing a special rule for determining gain that can be excluded from the sale of a home, an above-the-line deduction for unreimbursed travel expenses for reservists, and the exclusion of child care benefits for the military from income. 

In addition, military appointments would be treated as scholarships for the purposes of educational savings accounts.  This means that families would not face a tax penalty for planning ahead for secondary education in the event that a child has the opportunity to serve at one of the military academies.

"This bill pays respect to the men and women making sacrifices and, in many cases, risking their lives to protect and defend freedom," said Sen. Chuck Grassley, chairman of the Committee on Finance.  "I hope the Senate and House will quickly resolve the differences in their respective bills, allowing for final passage and getting these tax measures signed into law as soon as possible."

-- Electronic Accountant Newswire staff

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access