[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2522 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2522
To amend the Internal Revenue Code of 1986 to treat certain tribal
benefits and Alaska Permanent Fund dividends as earned income for
purposes of the kiddie tax.
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IN THE SENATE OF THE UNITED STATES
July 28, 2021
Ms. Murkowski (for herself and Mr. Sullivan) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to treat certain tribal
benefits and Alaska Permanent Fund dividends 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. CERTAIN AMOUNTS TREATED AS EARNED INCOME FOR KIDDIE TAX.
(a) In General.--Section 1(g)(4)(C) of the Internal Revenue Code of
1986 is amended to read as follows:
``(C) Treatment of certain amounts as earned
income.--For purposes of this subsection, each of the
following amounts shall be treated as earned income of
the child referred to in paragraph (1) to the extent
included in the gross income of such child:
``(i) Distributions from qualified
disability trusts.--Any amount included in the
gross income of such child under section 652 or
662 by reason of being a beneficiary of a
qualified disability trust (as defined in
section 642(b)(2)(C)(ii)).
``(ii) Certain indian tribal payments.--Any
payment which is included in the gross income
of such child and made by an Indian tribal
government (as defined in section 139E(c)(1)),
or from a trust of which the Indian tribal
government is treated as the owner under
subpart E of part I of subchapter J, to or for
the benefit of such child if--
``(I) such child or a family member
(within the meaning of section
267(c)(4)) is an enrolled member of the
tribe with respect to such Indian
tribal government, and
``(II) such payment is made by
reason of such enrollment.
``(iii) Certain payments from native
corporations or settlement trusts.--Any payment
which is included in the gross income of such
child and--
``(I) made by a Native corporation
(as defined in section 646(h)(2)) to or
for the benefit of such child if such
child or a family member (within the
meaning of section 267(c)(4)) has an
equity interest in the Native
corporation, or
``(II) made by a Settlement Trust
(as defined in section 646(h)(4)) to or
for the benefit of such child if such
child or a family member (within the
meaning of section 267(c)(4)) has a
beneficial interest in such Settlement
Trust.
``(iv) Alaska permanent fund dividends.--
The amount of any Alaska Permanent Fund
dividend which is included in the gross income
of such child.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2020.
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