[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1667 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 1667

      To amend the Internal Revenue Code of 1986 to treat certain 
     scholarships as earned income for purposes of the kiddie tax.


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                   IN THE SENATE OF THE UNITED STATES

                 May 23 (legislative day, May 22), 2019

Mr. Scott of South Carolina (for himself, Ms. Hassan, Mr. Cassidy, Mr. 
Cramer, Mr. Roberts, Mr. Daines, Ms. Ernst, Ms. Collins, Mr. King, Ms. 
   Sinema, Mr. Jones, Mr. Wyden, Mr. Menendez, Ms. Cortez Masto, Ms. 
Klobuchar, and Mr. Blumenthal) introduced the following bill; which was 
          read twice and referred to the Committee on Finance

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                                 A BILL


 
      To amend the Internal Revenue Code of 1986 to treat certain 
     scholarships as earned income for purposes of the kiddie tax.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Relief for Student Success 
Act''.

SEC. 2. CERTAIN SCHOLARSHIPS TREATED AS EARNED INCOME FOR KIDDIE TAX.

    (a) In General.--Section 1(g)(4) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(D) Treatment of certain scholarships.--For 
                purposes of this subsection, any scholarship or 
                fellowship grant which--
                            ``(i) is received by a child who is a 
                        candidate for a degree at an educational 
                        organization described in section 
                        170(b)(1)(A)(ii),
                            ``(ii) supports such candidacy, and
                            ``(iii) is included in the gross income of 
                        such child,
                shall be considered earned income of such child.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.
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