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1992 gross income. He attached the following statement to his
return:
Compensation received by the taxpayer, a firefighter
injured in the line of duty, and paid as mandated by
section 45-19-1 of the General Laws of Rhode Island,
1954 as amended, is excluded from gross income under
I.R.C. section 104(a) and regulation section 1.104-
1(b).
Discussion
A. Exclusion Under Section 104(a)(1)
1. Background
Respondent determined and contends that petitioner's pension
payments of $7,101 for 1992 should be included in income.
Petitioner contends that his pension payments of $7,101 for 1992
are excludable from gross income under section 104(a)(1). We
agree with respondent.
Section 104(a)(1) provides that gross income does not
include amounts received under worker's compensation acts as
compensation for personal injuries or sickness. For benefits to
qualify for exclusion under section 104(a)(1), the worker's
compensation act at issue must restrict benefits to work-related
personal injuries or sickness. See Rutter v. Commissioner, 760
F.2d 466, 468 (2d Cir. 1985), affg. T.C. Memo. 1984-525; Take v.
Commissioner, 82 T.C. 630, 634 (1984), affd. 804 F.2d 553 (9th
Cir. 1986); Haar v. Commissioner, 78 T.C. 864, 868 (1982), affd.
per curiam 709 F.2d 1206 (8th Cir. 1983). If a statute under
which benefits are paid does not restrict benefits to work-
related personal injuries or sickness, the fact that the claimant
was injured on the job or in the line of duty is irrelevant. See
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