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corresponding increase in petitioners’ adjusted gross income.3
Petitioners contend that the Social Security benefits
reported on the Forms SSA-1099 as “worker’s compensation offset”
should not be included as part of petitioner’s Social Security
benefits. They argue that there was no “offset” but merely a
“nonpayment” because neither petitioner nor the insurance company
that paid the worker’s compensation benefit to petitioner
received payments of the amounts reported from the Social
Security Administration.
Discussion
Gross income includes “all income from whatever source
derived”, unless specifically excluded. Sec. 61(a). Generally,
gross income does not include “amounts received under workmen’s
compensation acts as compensation for personal injuries or
sickness.” Sec. 104(a)(1). Social Security benefits, however,
are included in gross income as provided by section 86.
Married taxpayers filing a joint return whose modified
adjusted gross income plus one-half of their Social Security
3 The increase in petitioners’ adjusted gross income in
1996 resulted in a computational adjustment to petitioners’
itemized deductions. Petitioners appear to dispute this
adjustment, alleging in their petition that respondent erred in
disallowing certain expenses and deductions. Petitioners,
however, have presented no evidence or argument regarding this
issue, and we thus deem them to have conceded it. See Rybak v.
Commissioner, supra; Zimmerman v. Commissioner, supra. Our
determination of the Social Security issue will resolve the
computational adjustment.
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