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to the contrary, it is clear under Federal tax law that Social
Security disability benefits are included in gross income to the
same extent as other Social Security benefits. Sec. 86(d)(1);
Thomas v. Commissioner, T.C. Memo. 2001-120. The amount of the
benefits includable in a taxpayer’s income depends upon the
taxpayer’s filing status and income from other sources but never
exceeds 85 percent of the benefits received. Sec. 86(a). We
have reviewed respondent’s calculations and conclude that
respondent was correct in determining that 85 percent of
petitioners’ Social Security disability benefits are includable
in their gross income for the year 2000.
Petitioners argue that they “have a prenuptial agreement
that stipulates separate property, wages and/or earnings”. We
interpret petitioners’ argument to be that, pursuant to the
prenuptial agreement, their income should not be combined for
purposes of applying section 86. Such an agreement has no effect
on the application of Federal tax law under the circumstances of
this case. Petitioners elected to file a joint Federal income
tax return, and therefore their tax must be “computed on the
aggregate income and the liability with respect to the tax shall
be joint and several.” See sec. 6013(d)(3). Petitioners may not
revoke their election to file jointly after the expiration of the
time for filing the return. See Ladden v. Commissioner, 38 T.C.
530 (1962); sec. 1.6013-1(a)(1), Income Tax Regs.
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Last modified: May 25, 2011