- 5 -
The amounts that petitioner received under the pilot
disability plan were received through accident and health
insurance for personal injuries or sickness within the meaning of
section 104(a)(3). Trappey v. Commissioner, 34 T.C. 407 (1960);
Andrews v. Commissioner, T.C. Memo. 1992-668. Thus, petitioner
may exclude those amounts if he paid premiums for the disability
plan or if his employer paid premiums and the premiums were
includable in his gross income. See Miley v. Commissioner, T.C.
Memo. 2002-236.
Petitioner suggests that, in reality, the employees of U.S.
Airways, including petitioner, paid the contributions that were
made to the pilot disability plan. He cites the negotiations
between ALPA and U.S. Airways wherein ALPA and the U.S. Airways
pilots made wage concessions in exchange for the disability
benefits package. Petitioner suggests that the wage concessions
the U.S. Airways employees made funded the contributions to the
pilot disability plan. Petitioner argues that the disability
benefits that he received under that plan are excludable from
gross income under section 104(a)(3). We disagree.
There is no dispute in this case that any contributions to
the pilot disability plan were actually paid by U.S. Airways,
petitioner’s employer. Consequently, any benefits received under
that plan are includable in petitioner’s income unless the
contributions were includable in petitioner’s gross income. We
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011