SCARBOROUGH, Maine (AP) — Maine’s independent U.S. senator says he’s attempting to fix a conflict in federal law that creates a burden for recipients of disability benefits.
Sen. Angus King says the conflict affects people who qualify for Affordable Care Act subsidies and have recently been approved as eligible for Social Security Disability Insurance. King says qualifying for disability insurance can take several years, and the agency then issues a retroactive lump-sum amount that dates back to the initial request.
The Internal Revenue Service considers the payment as income for a single year. King says the added income can bump a person above the threshold for ACA subsidies.
King and Republican Sen. Marco Rubio of Florida support a bill to direct the IRS to reduce the tax burden to the portion due in the current tax year.