Tax Relief for Student Success Act

Bill: 116-s-1667
Sponsor: full_name: Sen. Scott, Tim [R-SC]
Introduced: 2019-05-23
Policy area: Taxation
Subjects: Higher education

Income tax rates

Social work, volunteer service, charitable organizations

Student aid and college costs

Tax treatment of families

Wages and earnings
Latest action: action_date: 2019-05-23
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-05-23
action_desc: Introduced in Senate
text: <p><b>Tax Relief for Student Success Act</b></p> <p>This bill treats certain scholarship or fellowship grants received by 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 grants from such tax. The bill applies to taxable years beginning after December 31, 2017.</p>

tv_txt: II 116th CONGRESS 1st Session S. 1667 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 A BILL To amend the Internal Revenue Code of 1986 to treat certain scholarships as earned income for purposes of the kiddie tax.

1. Short title This Act may be cited as the Tax Relief for Student Success Act . 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.