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Kiddie Tax Changes: Tribal Benefits and Alaska Dividends as Earned Income.

This bill changes how the "kiddie tax" is calculated for children's income. It will treat certain payments from Indian tribal governments, Alaska Permanent Fund dividends, and distributions from qualified disability trusts as earned income. This reclassification could lead to a lower tax burden on these specific types of income, potentially leaving more money for families.
Key points
Payments from Indian tribal governments and Alaska Permanent Fund dividends will be considered earned income for kiddie tax purposes.
This change may reduce the tax owed by children receiving these funds, increasing their disposable income.
The new rules apply to tax years beginning after December 31, 2020.
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Additional Information
Print number: 117_HR_4783
Sponsor: Rep. Young, Don [R-AK-At Large]
Process start date: 2021-07-28
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to treat certain tribal benefits and Alaska Permanent Fund dividends as earned income for purposes of the kiddie tax.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_4783.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-07-28.

What are the main provisions?

Key points include:

  • Payments from Indian tribal governments and Alaska Permanent Fund dividends will be considered earned income for kiddie tax purposes.
  • This change may reduce the tax owed by children receiving these funds, increasing their disposable income.
  • The new rules apply to tax years beginning after December 31, 2020.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Young, Don [R-AK-At Large].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Taxes Benefits Family