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Instructions then direct the taxpayer to report on line 13b
(“Taxable amount (see page 28)”) the portion of the taxpayer’s
Social Security benefits that is taxable pursuant to the
Worksheet on page 29 of the Instructions.3
In completing their 1999 Form 1040A, petitioners left line
13a blank and placed the figure “3807.00" in line 13b. The
figure “3807.00" represents one-half of the Social Security
benefits that were received by Mrs. Gill in 1999; that figure
also correctly represents the amount of such benefits that was
properly includable in petitioners’ income for 1999.
On their 1999 Form 1040A, petitioners reported adjusted
gross income in the amount of $41,053, taxable income in the
amount of $28,353, and tax in the amount of $4,256.4 Petitioners
enclosed with their return a check in the amount of the
difference ($256.65) between their reported liability ($4,256)
and the total amount of their withholding ($3,999.35).
Upon receiving petitioners’ 1999 return, respondent
mistakenly concluded that petitioners had overreported their
income by $3,807; i.e., the amount reported on line 13b as the
taxable amount of Social Security benefits received. Respondent
3 The Worksheet reflects the statutory formula set forth in
sec. 86 that determines the amount of Social Security benefits
that is includable in the taxpayer’s gross income.
4 The parties agree that petitioners’ reported tax
liability of $4,256 represents petitioners’ correct tax liability
for 1999.
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Last modified: May 25, 2011