To amend the Internal Revenue Code of 1986 to provide that the unearned income of children attributable to personal injury awards shall not be taxed at the marginal rate of the parents.

Amends the Internal Revenue Code, with respect to situations in which unearned income of a minor child is taxed as if it were parental income, to not take into account any income attributable to an amount excluded from the gross income of the child by reason of the child receiving a personal injury award.