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We hold that petitioner’s military retirement pay is
includable in petitioner’s gross income. Respondent’s
determination in this regard is sustained.
B. Social Security Benefits
Petitioner contends that Social Security benefits “can’t be
the subject of a legal process”. Essentially, petitioner
contends that no portion of his Social Security benefits is
subject to Federal income tax. We disagree; petitioner’s
contention is wrong, and it is frivolous.
Section 86 provides for the taxability of Social Security
benefits pursuant to a statutory formula. Thus, if a taxpayer’s
“modified adjusted gross income” plus one-half of the taxpayer’s
Social Security benefits exceeds a certain base amount, then a
portion of the taxpayer’s Social Security benefits is includable
in gross income; i.e., such portion is subject to Federal income
tax. Sec. 86(a)-(d); see Clark v. Commissioner, T.C. Memo. 1998-
280, affd. without published opinion 187 F.3d 641 (8th Cir.
1999); Roberts v. Commissioner, T.C. Memo. 1998-172, affd.
without published opinion 182 F.3d 927 (9th Cir. 1999). That 42
U.S.C. sec. 407 (1994) may provide that a taxpayer’s Social
Security benefits are not subject to levy or other legal process,
but see sec. 6334(c), has nothing to do with the taxability of
those benefits.
In view of the foregoing, we hold that petitioner’s Social
Security benefits are includable in petitioner’s gross income as
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