Section 1 Short title
This Act may be cited as the “Tax Fairness for Disabled Workers Act”.
Tax Fairness for Disabled Workers Act
A BILL
To amend the Internal Revenue Code of 1986 to ensure proper allocation of lump-sum payments of disability insurance benefits for determinations of modified adjusted gross income under the refundable tax credit for coverage under a qualified health plan.
Sec. 2 Allocation of lump-sum payments of Social Security benefits for determinations of modified adjusted gross income under the refundable tax credit for coverage under a qualified health plan
In general— Section 36B(d)(2) of the Internal Revenue Code of 1986 is amended by inserting at the end the following new subparagraph:
“(C) Exclusion of certain amounts received as lump-sum payment—For purposes of subparagraph (B), such amount shall not include any portion of a lump-sum payment of disability insurance benefits under section 223 of the Social Security Act (42 U.S.C. 423) which is—
“(i) received during the taxable year, and
“(ii) attributable to prior taxable years.”
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2018.