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his excess earnings during 1998, he should not be required to
include in income the net benefits paid to him during 1998.
The Court rejects petitioner's argument. Section
86(d)(2)(A) provides:
(2) Adjustment for repayments during year.--
(A) In general.–-For purposes of this section, the
amount of social security benefits received during any
taxable year shall be reduced by any repayment made by the
taxpayer during the taxable year of a social security
benefit previously received by the taxpayer (whether or not
such benefit was received during the taxable year).
Thus, it is evident from section 86(d)(2)(A) that a taxpayer is
allowed a reduction, for tax purposes, of any repayment of
benefits made during the taxable year; however, there is no
provision in the statute that allows an additional reduction for
excess benefits paid that year due to the taxpayer's excess
earnings that year. Petitioner's employment earnings during 1998
were not known until the close of that year and only then could
it be determined whether those earnings constituted excess
earnings that would cause an overpayment of Social Security
benefits. It is well settled that income is taxable when it has
been actually or constructively received. Poczatek v.
Commissioner, 71 T.C. 371, 376 (1978) (citing N. Am. Oil Consol.
Co. v. Burnet, 286 U.S. 417 (1932)). Petitioner actually
received $10,192 in Social Security benefits during 1998. That
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