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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.
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