Jean A. Weaver - Page 4

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               Social Security benefits are subject to income tax treatment           
          pursuant to section 86.  The amount of such benefits to be                  
          included in gross income is subject to a statutory formula.  See            
          sec. 86(a) through (d).  Section 86 requires inclusion of the               
          payments if the sum of the taxpayer’s adjusted gross income (with           
          certain modifications not relevant here) and one-half of the                
          Social Security benefits received, exceeds a specified “base                
          amount”.  Jelle v. Commissioner, 116 T.C. 63, 71 (2001).  This              
          base amount is $25,000 for a taxpayer, like petitioner, who is              
          not married and did not file a joint return.  See sec. 86(c)(1).            
          Since petitioner reported adjusted gross income of $29,278 and              
          received Social Security benefits totaling $8,756 during the 2000           
          taxable year, the base amount threshold is clearly exceeded.  We            
          therefore sustain respondent’s determination that a portion of              
          $8,756 petitioner received in 2000 as Social Security benefits              
          must be included in petitioner’s gross income for that taxable              
               We note that petitioner, like other taxpayers, has                     
          questioned the fairness of section 86.  See, e.g., McAdams v.               
          Commissioner, 118 T.C. 373, 379 (2002).  However, “No scheme of             
          taxation, whether the tax is imposed on property, income, or                
          purchases of goods and services, has yet been devised which is              
          free of all discriminatory impact.”  San Antonio Indep. Sch.                
          Dist. v. Rodriguez, 411 U.S. 1, 41 (1973).  And this Court has              

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