To amend the Internal Revenue Code of 1986 to treat certain first responder survivors benefits as earned income for purposes of the kiddie tax.

Bill: 116-hr-2840
Sponsor: full_name: Rep. Beyer, Donald S., Jr. [D-VA-8]
Introduced: 2019-05-20
Policy area: Taxation
Subjects: Disability and paralysis

First responders and emergency personnel

Income tax rates

Tax treatment of families
Latest action: action_date: 2019-05-20
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2019-05-20
action_desc: Introduced in House
text: <p>This bill treats certain first responder survivors benefits 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 benefits from such tax. The bill applies to taxable years beginning after December 31, 2017.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 2840 IN THE HOUSE OF REPRESENTATIVES May 20, 2019 Mr. Beyer 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 first responder survivors benefits as earned income for purposes of the kiddie tax.

1. Certain first responder survivors benefits 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 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 first responder survivors benefits Any payment made by Federal, State, or local government to such child if such payment is made by reason of the death of the parent of such child during such parent’s service as a law enforcement officer, firefighter, paramedic, or emergency medical technician. . (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.