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“modified adjusted gross income” plus one-half of the Social
Security benefits received during the taxable year exceeds the
“base amount”, then a portion of the taxpayer’s Social Security
benefits are includable in gross income. Sec. 86(a) through (d).
A. Base Amount and Living Apart at All Times During the
Taxable Year
Section 86(c)(1) provides that for purposes of section 86,
the term “base amount” means:
(A) except as otherwise provided in this
paragraph, $25,000,
(B) $32,000 in the case of a joint return, and
(C) zero in the case of a taxpayer who--
(i) is married as of the close of the
taxable year (within the meaning of section
7703) but does not file a joint return for
such year, and
(ii) does not live apart from his spouse
at all times during the taxable year.
When he prepared his 1998 tax return, petitioner filled out
the Social Security Benefits Worksheet. Petitioner listed
$25,000 as his “base amount” because he was married and believed
that he lived apart from his spouse for the entire year.
Respondent contends that petitioner did not live apart from his
wife at all times during the taxable year within the meaning of
section 86(c)(1)(C)(ii). Whether a taxpayer did not “live apart”
from his spouse “at all times during the taxable year”, within
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Last modified: May 25, 2011