A bill to amend the Internal Revenue Code of 1986 to treat Alaska Permanent Fund dividends as earned income for purposes of the kiddie tax.

Bill: 116-s-2078
Sponsor: full_name: Sen. Murkowski, Lisa [R-AK]
Introduced: 2019-07-10
Policy area: Taxation
Subjects: Alaska

Income tax rates

Interest, dividends, interest rates

State and local finance

Tax treatment of families
Latest action: action_date: 2019-07-10
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-07-10
action_desc: Introduced in Senate
text: <p>This bill treats dividends paid to children from the Alaska Permanent Fund as earned income, not subject to the &quot;kiddie tax&quot; which taxes income of children as unearned income subject to the parent's marginal tax rate. </p>

tv_txt: II 116th CONGRESS 1st Session S. 2078 IN THE SENATE OF THE UNITED STATES July 10, 2019 Ms. Murkowski 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 Alaska Permanent Fund dividends as earned income for purposes of the kiddie tax.

1. 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 Alaska permanent fund dividends For purposes of this subsection, any Alaska Permanent Fund dividend which is received by the child referred to in paragraph (1) and included in the gross income of such child shall be treated as earned income of such child. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2017.