“We applaud Congress for passing a long-needed, bipartisan fix to correct changes made to the so-called “kiddie tax” in the 2017 tax overhaul that inadvertently caused harm to hundreds of thousands of low- and middle-income students who rely on scholarship aid to pay for their college education. Taxing these students at the same rate as wealthy individuals, in a mistake that also affected some “Gold Star” families receiving survivor benefits, resulted in a draconian tax hike on the backs of individuals who could ill afford it and already have been forced to shoulder this additional burden for the 2018 tax year.
Fortunately, this fix will both restore lower tax rates to these individuals and provide an opportunity to obtain a refund for the extra taxes they were forced to pay in the meantime. We appreciate the members of the House and Senate who worked to correct this mistake, and look forward to President Trump signing it into law.”