- 2 -
After concessions by petitioner of unreported interest
income, a State income tax refund, and a retirement income
distribution, the sole issue for decision is whether, under
section 86(a), Social Security benefits for the year at issue are
includable in petitioner's gross income where a portion of such
benefits includes overpayments that must be repaid to the Social
Security Administration due to excess earnings by petitioner
during the year at issue.
Some of the facts were stipulated. Those facts and the
accompanying exhibits are so found and are incorporated herein by
reference. Petitioner's legal residence at the time the petition
was filed was Weslaco, Texas.
Petitioner attained the age of 65 on July 1, 1996. He
applied for and began receiving retirement Social Security
benefits as of that date. Petitioner continued in gainful
employment as an aeronautical engineer and was employed through
the remainder of 1996, 1997, 1998, and 1999. At the time of
trial, petitioner was no longer employed.
Because of petitioner's continued employment, his Social
Security benefits were overpaid in each of the years 1996, 1997,
and 1998. The overpayments were paid back through a reduction in
petitioner's monthly Social Security benefits. From August 1998
through August 1999, all of petitioner's monthly benefits were
applied toward the accumulated overpayment. From October 1999
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011