Title: Tax Fairness for Tribal Youth Act of 2019
Policy area: Taxation

Summary:
Tax Fairness for Tribal Youth Act of 2019
This bill treats certain payments made by Indian tribal governments to children as earned income of the child for the purposes of the kiddie tax (the tax on the unearned income of children). This has the effect of exempting the payments from the tax. The bill applies to taxable years beginning after December 31, 2017.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2810 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2810

 To amend the Internal Revenue Code of 1986 to treat certain payments 
made by Indian tribal governments as earned income for purposes of the 
                              kiddie tax.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 16, 2019

   Ms. Moore (for herself, Mr. Estes, Mr. Calvert, Mr. Carbajal, Mr. 
 Cardenas, Mr. Cole, Mr. Cook, Mrs. Craig, Ms. Haaland, Mr. Kind, Mr. 
Ruiz, Ms. Shalala, Mr. Young, Mr. Kildee, and Mr. Cisneros) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to treat certain payments 
made by Indian tribal governments 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 Fairness for Tribal Youth Act of 
2019''.

SEC. 2. CERTAIN PAYMENTS MADE BY INDIAN TRIBAL GOVERNMENTS 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 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 such child if--
                                    ``(I) such child is an enrolled 
                                member of the tribe with respect to 
                                such Indian tribal government, and
                                    ``(II) such payment is received by 
                                such child by reason of such 
                                enrollment.''.
    (b) Application to Alternative Minimum Tax.--Section 59(j)(1)(A) of 
such Code is amended by inserting ``and including amounts treated as 
earned income under section 1(g)(4)(C)'' after ``section 911(d)(2)''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.
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