- 2 - Respondent determined a deficiency in petitioners' 1997 Federal income tax in the amount of $1,316. This Court must decide whether petitioners must include a workers’ compensation offset of $5,540.40 as part of their Social Security benefits. Some of the facts in this case have been stipulated and are so found. Petitioners resided in Cottage Grove, Minnesota, at the time they filed their petition. In September 1994, Phillis De Both (petitioner) was injured in a workplace accident. Both of petitioner's arms were severed, and she suffered other serious injuries. Petitioner received workers' compensation benefits under Minnesota law for her injuries. She also received Social Security benefits under Federal law for her injuries. CompCost, Inc. (CompCost), a State Fund Mutual Company, handles the Minnesota workers’ compensation claims of petitioner. On February 23, 1999, CompCost advised that the $25,000 threshold under Minnesota law was met on May 2, 1996, and since that date CompCost has been taking a Social Security offset against petitioner’s workers’ compensation benefit. The Social Security Administration filed a Form 1099 with respondent which indicated that in 1997 petitioner received total benefits of $5,723.90. Of that amount, $5,540 was not paid to petitioner, but was a "Worker's compensation offset". In 1997, petitioner received payments totaling $175 from Social Security,Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011