Memorial Day misconceptions and survivors’ tax benefits

May 23, 2025

The Memorial Day long weekend, which stretches to four days for folks who take today, Friday, off in addition to the federal Monday holiday, is the unofficial start to the summer season.

But we also should remember that Memorial Day is a somber commemoration. It was created to remember and honor the armed forces personnel who died while serving.

Apparently, that’s news to many Americans.

Wrong holiday takes: A new survey by Talker Research found that only 48 percent of respondents knew the solemn reason for Memorial Day.

Thirty-five percent of the survey participants incorrectly thought Memorial Day was a holiday celebrating all military personnel, both living and deceased. There is a holiday for that. It’s Veterans Day on Nov. 11.

Five percent of those surveyed wrongly thought Memorial Day was a holiday commemorating all public servants, military or not, who lost their lives while working.

And 3 percent thought the holiday was to commemorate the Founding Fathers and their role in American independence. July 4 probably is the more appropriate date here.

Memorial Day

Memorial Day, a federal holiday held the last Monday in May, is the nation's foremost annual day to mourn and honor its deceased service men and women.

Originally called Decoration Day, the commemoration continued through the late 19th and early 20th centuries as an informal patriotic holiday that was increasingly called Memorial Day. After World War I, the event was expanded to honor those who died in all American wars, and was formalized by a "Memorial Day Order" issued by Grand Army of the Republic Commander-in-Chief John A. Logan in 1868.

The modern U.S. Code proclamation calls on Americans "to observe Memorial Day by praying, according to their individual religious faith, for permanent peace."

The U.S. Department of Veterans Affairs website has more on Memorial Day’s history.

Generational differences: Not surprisingly, Memorial Day knowledge depended a lot on the survey participants’ ages.

Older generations, by and large, were far more likely to know the exact definition of Memorial Day when compared to younger Americans.

A majority of Baby Boomers, 56 percent, knew precisely why Memorial Day was observed.

But only 38 percent of millennials knew the real reason for Memorial Day. Just 27 percent of Gen Z respondents selected the correct definition of the holiday.

Benefits for military survivors: While we honor those who made the ultimate sacrifice for our country, we can’t forget the families they left.

Survivors of deceased armed forces members are eligible to receive $100,000. Notably, this death gratuity amount is not taxable.

This death benefit has been available for military lives lost after Sept. 10, 2001. It goes to the primary next of kin of a service member who dies while on active duty or while serving in certain reserve statuses.

The lump sum payment’s purpose is to help the survivors in their readjustment, as well as assist them in meeting immediate expenses incurred after the loss of their loved one.

The gratuity is paid by the last military command of the deceased, and is the same regardless of the cause of death.

The U.S. Department of Defense’s military compensation webpage has more on the death gratuity. The U.S. Army’s My Army Benefits webpage also has information on how to more on how to claim the benefit.

Filing status option: Surviving spouses who are caring for dependent children also are entitled to use the same more tax-favorable filing status as other taxpayers who lose a spouse.

Qualifying widows or widowers, regardless of whether military or civilian, may be able to file as a Qualifying Surviving Spouse for two years after their spouse's death.

This filing status allows them to use joint return tax rates and, if they don’t itemize, claim the highest standard deduction amount during this period.

These tax-related benefits are small consolation to the families, friends, and colleagues of military personnel lost fulfilling their oath to our country. So the least the rest of us can do is honor their ultimate sacrifice on Memorial Day.

It’s not a lot to ask. And you have the rest of the summer for fun.

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