Compensation Paid to Dependents of Fallen Public Safety Officers is Excluded from Gross Income

On May 22, 2015, the Don't Tax Our Fallen Public Safety Heroes Act became effective. The Act adds Internal Revenue Code section 104(a)(6), which provides a specific exclusion from income for amounts paid:

  • by the Department of Justice as a public safety officer disability or survivor's benefit; or
  • under a state program that provides benefits for surviving dependents of a public safety officer who has died as the direct and proximate result of a personal injury sustained in the line of duty.

Payers should not file Form 1099-MISC to report the payments. The amounts are excluded from gross income and are not subject to any information reporting requirements.