- 3 - Illinois worker’s compensation benefits. In 2001, petitioner continued to receive worker’s compensation benefits of $15,738.32. In 2001, petitioner’s attorney advised her to file for Social Security Disability Insurance benefits. In April of 2001, petitioner applied for Social Security benefits. According to Form SSA-1099, Social Security Statement, issued by the Social Security Administration, petitioner received Social Security benefits of $4,422.40 for taxable year 2001. Form SSA-1099 for taxable year 2001 also shows that there was a worker’s compensation offset in the amount of $4,422.40. Petitioners did not report any Social Security benefits on their joint Federal income tax return for 2001. On April 12, 2004, respondent issued to petitioners a notice of deficiency that determined petitioners failed to include in gross income for the taxable year 2001 the amount of $3,7592 as a result of adjustments for taxable Social Security benefits under section 86. Further, the determination resulted in computational adjustments causing the disallowance of a portion of the deduction claimed by petitioners for medical expenses. 2Respondent calculated this amount as 85 percent of the $4,422.40 in Social Security benefits for 2001.Page: Previous 1 2 3 4 5 6 7 8 Next
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