A bill 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.

This bill would change how the IRS taxes certain payments received by Alaska Native and American Indian children, specifically Alaska Permanent Fund dividends and tribal disability payments. Currently, these payments are often classified as "unearned income," which subjects them to the "kiddie tax"—a rule that taxes a child’s income at their parents' higher tax rate. By reclassifying these payments as "earned income," the bill would allow this money to be taxed at the child’s own lower tax rate, potentially reducing the tax burden on tribal families and ensuring children keep more of their benefits.