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taxpayer’s Social Security benefits exceeds a certain base amount
or an adjusted base amount, then a portion of the taxpayer’s
Social Security benefits is includable in gross income and
subject to Federal income tax. Sec. 86(a) through (d). The
includable portion, never exceeding 85 percent, varies according
to a formula set forth in section 86(a). As relevant in the
present case for a joint return, the base amount is $32,000 and
the adjusted base amount is $44,000. Sec. 86(c)(1)(B) and
(2)(B).
Petitioner contends that the payments he received from the
Social Security Administration were nontaxable disability
benefits. On the other hand, respondent contends in the notice
of deficiency that “We have no indication that the $14,676 was
disability income from Social Security.” We, however, need not
decide whether petitioner’s Social Security payments are properly
characterized as disability benefits.17 Assuming arguendo that
petitioner in fact received Social Security disability benefits,
our analysis of whether such payments are includable in
petitioner’s gross income remains unchanged. As stated above,
Social Security disability benefits are treated the same as other
Social Security benefits. Sec. 86(d)(1); Thomas v. Commissioner,
17 Our decision on this issue does not depend on which
party has the burden of proof. We note in passing, however, that
petitioner does not argue that sec. 7491(a) places the burden of
proof on the Commissioner here.
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