- 5 - from petitioner’s employer were included in petitioner’s income. Id. Therefore, petitioner is not entitled to exclude the disability retirement annuity from gross income under section 104(a)(3). Accordingly, we sustain respondent’s determination that petitioner’s disability retirement annuity received in 1997 is includable in his gross income. Respondent also contends that petitioner failed to include in gross income a portion of the Social Security benefits he received in 1997. Section 86(a) requires the inclusion of a portion of Social Security benefits in gross income when the sum of the recipient’s modified adjusted gross income plus one-half of the Social Security benefits exceeds certain threshold amounts. In the case of a single taxpayer, when this sum exceeds $25,000, the lesser of 50 percent of such excess or 50 percent of the Social Security benefits received during the taxable year must be included in gross income. Sec. 86(a)(1), (c)(1)(A). Under section 86, modified adjusted gross income in general equals adjusted gross income with adjustments not relevant here. Sec. 86(b)(2). Petitioner had modified adjusted gross income in 1997 in excess of $25,000. Therefore, a portion of his Social Security benefits is taxable. Accordingly, we sustain respondent’s determination that petitioner’s gross income includes a portionPage: Previous 1 2 3 4 5 6 Next
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