H.R. 2840 (Introduced in House) — 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.

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

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