Sec. 203. Application of Social Security tax to net investment income

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Section 1411(a)(1) of the Internal Revenue Code of 1986 is amended by striking 3.8 percent and all that follows and inserting the sum of— 3.8 percent of the lesser of— net investment income for such taxable year, or the excess (if any) of— the modified adjusted gross income for such taxable year, over the medicare contribution threshold amount, plus 12.4 percent of the lesser of— net investment income for such taxable year, or the excess (if any) of— the modified adjusted gross income for such taxable year, over the social security contribution threshold amount. .

Section 1411(a)(2) of such Code is amended by striking 3.8 percent and all that follows and inserting the sum of— 3.8 percent of the lesser of— the undistributed net investment income for such taxable year, or the excess (if any) of— the adjusted gross income (as defined in section 67(e)) for such taxable year, over the dollar amount at which the highest tax bracket in section 1(e) begins for such taxable year, plus 12.4 percent of the lesser of— the amount described in subparagraph (A)(i), or the excess described in subparagraph (A)(ii). .

Section 1411(b) of such Code is amended to read as follows: For purposes of this section— The term medicare contribution threshold amount means— in the case of a taxpayer making a joint return under section 6013 or a surviving spouse (as defined in section 2(a)), $250,000, in the case of a married taxpayer (as defined in section 7703) filing a separate return, ½ of the dollar amount determined under subparagraph (A), and in any other case, $200,000. The term social security contribution threshold amount means $400,000. .

The heading of chapter 2A of such Code (and the item relating to such chapter in the table of chapters for subtitle A of chapter 1 of such Code) are each amended by striking medicare contribution and inserting contributions . The amendments made by this section shall apply to taxable years beginning after December 31, 2024.