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are entitled to a refund for the overpayment of tax. Respondent
contends that the law is clear and petitioners’ Social Security
income was correctly reported on their 1997 income tax return as
taxable income under section 86(a). We agree with respondent.
Under the provisions of section 86, Social Security
disability benefits received after 1984 are subject to tax.
Section 86 was duly enacted by Congress in the Social Security
Act Amendments of 1983, Pub. L. 98-21, sec. 121(a), 97 Stat. 65,
80. Thus, we are bound to follow the statutes as enacted by
Congress. See Donigan v. Commissioner, 68 T.C. 632, 633 (1977);
Bailey v. Commissioner, T.C. Memo. 1994-391.
Section 61(a) provides that, except as otherwise provided by
law, gross income includes all income from whatever source
derived. Further, section 86(a) provides that if the modified
adjusted gross income of the taxpayer plus one-half of the Social
Security benefits received exceeds the adjusted base amount, then
gross income includes the lesser of: (1) The sum of (a) 85
percent of such excess, plus (b) the lesser of (i) one-half of
the Social Security benefits received during the year or (ii)
one-half of the difference between the adjusted base amount and
the base amount of the taxpayer; or (2) 85 percent of the Social
Security benefits received during the taxable year. See sec.
86(a)(2). The base amount and the adjusted base amount for
taxpayers filing a joint return for 1997 is $32,000 and $44,000,
respectively. See sec. 86(c)(1)(B) and (2)(B). Petitioner’s
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