Tax Relief for Student Success Act

II 116TH CONGRESS 1ST SESSION S. 1667 To amend the Internal Revenue Code of 1986 to treat certain scholarships as earned income for purposes of the kiddie tax. 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. COR- TEZ MASTO, Ms. KLOBUCHAR, and Mr. BLUMENTHAL) introduced the following bill; which was read twice and referred to the Committee on Fi- nance A BILL To amend the Internal Revenue Code of 1986 to treat cer- tain scholarships as earned income for purposes of the kiddie tax. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Tax Relief for Student 4 Success Act’’. 5 VerDate Sep 11 2014 04:38 Jun 01, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1667.IS S1667 kjohnson on DSK79L0C42 with BILLS 2 •S 1667 IS SEC. 2. CERTAIN SCHOLARSHIPS TREATED AS EARNED IN- 1 COME FOR KIDDIE TAX. 2 (a) IN GENERAL.—Section 1(g)(4) of the Internal 3 Revenue Code of 1986 is amended by adding at the end 4 the following new subparagraph: 5 ‘‘(D) TREATMENT OF CERTAIN SCHOLAR- 6 SHIPS.—For purposes of this subsection, any 7 scholarship or fellowship grant which— 8 ‘‘(i) is received by a child who is a 9 candidate for a degree at an educational 10 organization described in section 11 170(b)(1)(A)(ii), 12 ‘‘(ii) supports such candidacy, and 13 ‘‘(iii) is included in the gross income 14 of such child, 15 shall be considered earned income of such 16 child.’’. 17 (b) EFFECTIVE DATE.—The amendment made by 18 this section shall apply to taxable years beginning after 19 December 31, 2017. 20 Æ VerDate Sep 11 2014 04:38 Jun 01, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S1667.IS S1667 kjohnson on DSK79L0C42 with BILLS