9
Furthermore, petitioner could not recall what the largest
expense, repairs and maintenance, represented.
Based upon our review of the relevant factors, we find that
petitioner was compensated as an independent contractor by Astron
during 1993. Therefore, petitioner's net earnings therefrom are
subject to self-employment tax. Respondent is sustained on this
issue.
Social Security Benefits
Section 86(a) provides that gross income includes Social
Security benefits in the amount equal to the lesser of: (1) One
half of the Social Security benefits received during the year; or
(2) one-half of the excess of the sum of (a) modified adjusted
gross income and (b) plus one-half of the Social Security
benefits received over the base amount. The base amount for
taxpayers filing a joint return for 1993 is $32,000. Sec.
86(c)(1)(B). For 1993, petitioner's modified adjusted gross
income equals adjusted gross income. See sec. 86(b)(2).
Petitioner argues that the calculation pursuant to section
86 does not result in the inclusion of any Social Security
benefits in income for 1993. The sum of one-half of the Social
Security benefits received, $10,687, and modified adjusted gross
income for 1993, $32,251,5 equals $42,928. This amount exceeds
5 This includes additional wage income of $170 and allowing a
deduction of $2,096 for one-half of the self-employment taxes
determined by respondent.
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