- 8 - interest income earned on petitioner's deposits, $3,490 constituted taxable Social Security benefits, $2,486 constituted rental income from the Housing Authority of the City of Chester, $11,004 constituted nontaxable transfers between petitioner's accounts, and $3,490 constituted nontaxable Social Security benefits. Also for 1990, petitioner received $2,639 in interest income that was not deposited into or credited to his accounts. Petitioner was entitled to a deduction of $2,961 for one-half of his self-employment tax liability, a personal exemption of $2,050, and a standard deduction of $3,375. The following schedule reflects the calculation of petitioner's 1990 taxable income. Petitioner's 1990 Taxable Income Item Amount Total deposits/credits $62,755 Interest income 2,639 Nontaxable transfers (11,004) Nontaxable Social Security income (3,490) One-half self-employment taxes (2,961) Personal exemption (2,050) Standard deduction (3,375) Taxable income $42,514 For 1990, petitioner's total Federal tax liability equaled $15,886, of which $9,964 constituted income taxes, and $5,922 constituted self-employment taxes. For 1986 through 1990, petitioner did not have reasonable cause for failing to file his Federal income tax returns.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011