[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4846 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4846

To amend the Internal Revenue Code of 1986 to provide that the unearned 
income of children attributable to personal injury awards shall not be 
               taxed at the marginal rate of the parents.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 28, 1994

 Mr. Boehlert introduced the following bill; which was referred to the 
                      Committee on Ways and Means

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that the unearned 
income of children attributable to personal injury awards shall not be 
               taxed at the marginal rate of the parents.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TAX TREATMENT OF UNEARNED INCOME OF CHILDREN ATTRIBUTABLE TO 
              PERSONAL INJURY AWARDS.

    (a) In General.--Paragraph (4) of section 1(g) of the Internal 
Revenue Code of 1986 (relating to taxation of unearned income of minor 
children at parent's rate) is amended by redesignating subparagraph (B) 
as subparagraph (C) and by inserting after subparagraph (A) the 
following new subparagraph:
                    ``(B) Exception for unearned income attributable to 
                personal injury awards.--There shall not be taken into 
                account under subparagraph (A)(i) any income 
                attributable to an amount excluded from the gross 
                income of the child by reason of section 104(a)(2).''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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