- 5 -
Memo. 2000-281.
In this case, petitioner’s SSDI benefits were reduced,
dollar for dollar, by the worker’s compensation benefits that she
received. Her situation is clearly contemplated by section
86(d)(3), and the worker’s compensation benefits that she
received during the year in issue are subject to Federal income
tax as provided in that statute.
Petitioners do not suggest that respondent’s application of
section 86 is mathematically erroneous, and we are satisfied that
it is not. Petitioners explain that petitioner would not have
applied for SSDI benefits unless required to do so by her long-
term disability plan. They question the fairness of the
situation, pointing out that, had she not applied for SSDI
benefits, her worker’s compensation benefits would not be subject
to Federal income tax. According to petitioners, forgoing
petitioner’s SSDI benefits might have been to their financial
advantage.
We appreciate petitioners’ consternation; nevertheless, it
is the application of controlling law to the undisputed facts
that informs our decision–-not whether the result is fair or, as
petitioners suggest, unfair. Section 86(d)(3) requires that a
portion of the SSDI benefits (including the amount offset by
worker’s compensation benefits) received by petitioner during
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011