II 115th CONGRESS 2d Session S. 3326 IN THE SENATE OF THE UNITED STATES August 1, 2018 Mr. King (for himself and Mr. Rubio ) introduced the following bill; which was read twice and referred to the Committee on Finance 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.

1. Short title This Act may be cited as the Tax Fairness for Disabled Workers Act . 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 (a) 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. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2018.