Tax Relief for First Responder Beneficiaries Act

This bill aims to provide significant tax relief to individuals receiving benefits due to the death of a public safety officer. It achieves this by broadening the definition of eligible recipients for certain tax-exempt benefits under the Internal Revenue Code.

Specifically, the legislation amends Section 104(a)(6)(B) to change "surviving dependents" to "surviving beneficiaries" for public safety officers' death benefits, thereby expanding who can receive these tax-free payments. Additionally, it modifies Section 101(h)(1)(A) to include "a beneficiary of any life insurance policy or benefit plan" alongside a child as eligible for tax-exempt survivor annuity benefits.

These provisions ensure that a wider range of individuals, beyond immediate dependents, can receive these crucial benefits without incurring federal income tax. The amendments are effective for taxable years beginning after December 31, 2022, providing retroactive relief.