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2000, the Social Security disability benefits are attributable to
1996, 1997, 1998, 1999, and 2000.
Petitioners’ self-prepared 2000 return was filed September
20, 2001. Taking into account an extension to file, that return
was due on or before August 30, 2001.1 The income reported on
petitioners’ 2000 return does not take into account the Social
Security disability benefits petitioner received that year.
In the notice of deficiency, respondent determined that 85
percent of the Social Security disability benefits ($42,844)
petitioner received during 2000 is includable in their income for
that year and imposed a section 6651(a)(1) addition to tax for
their failure to file a timely Federal tax return. Other
adjustments in the notice of deficiency are not in dispute and
need not be addressed.
Discussion
Section 61(a) provides that, except as otherwise provided by
law, gross income includes all income from whatever source
derived. Relevant for our purposes, section 86(a) provides that
if the taxpayer’s modified adjusted gross income2 plus one-half
of the Social Security benefits received by the taxpayer exceeds
1 The parties stipulated the Aug. 30, 2001, date.
2 In this case, ignoring adjustments not relevant here,
petitioners’ modified adjusted gross income equals their adjusted
gross income. See sec. 86(b)(2).
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