- 5 - section 86(e), lump sum distributions of Social Security benefits are includable in the taxpayer’s gross income in the taxable year the benefits are received. Petitioners did not make an election under section 86(e) with respect to the lump-sum Social Security disability benefits received in 1997. Accordingly, we sustain respondent’s determination that petitioners’ gross income includes 85 percent of the respective Social Security disability benefits received during the years in issue. Reviewed and adopted as a report of the Small Tax Case Division. Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6
Last modified: May 25, 2011