To amend the Internal Revenue Code of 1986 to treat certain scholarships and fellowship grants as earned income for purposes of the kiddie tax.

This bill treats certain scholarship or fellowship grants received by children as earned income of the child for the purposes of the kiddie tax (the tax on the unearned income of children). This has the effect of exempting the grants from such tax. The bill applies to taxable years beginning after December 31, 2017.