INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED INCOME IS TAXED AS IF PARENT’S INCOME.

SEC. 510. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED INCOME IS TAXED AS IF PARENT’S INCOME. (a) In General.—Section 1(g)(2)(A) (relating to child to whom subsection applies) is amended by striking “age 14” and inserting “age 18”. (b) Treatment of Distributions From Qualified Disability Trusts.—Section 1(g)(4) (relating to net unearned income) is amended by adding at the end the following new subparagraph: “(C) Treatment of distributions from qualified disability trusts.—For purposes of this subsection, in the case of any child who is a beneficiary of a qualified disability trust (as defined in section 642(b)(2)(C)(ii)), any amount included in the income of such child under sections 652 and 662 during a taxable year shall be considered earned income of such child for such taxable year.”. (c) Conforming Amendment.—Section 1(g)(2) is amended by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by inserting after subparagraph (B) the following new subparagraph: “(C) such child does not file a joint return for the taxable year.”. (d) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2005.