- 4 -
his employer.2 This exclusion rate, thus determined, was much
greater than the exclusion rate determined by STRS.
In 1999, Mr. Wright received $33,123.90 in distributions
from STRS. A Form 1099-R issued to Mr. Wright for 1999 indicated
a taxable distribution in the amount of $32,128.50 and employee
contributions or insurance premiums in the amount of $995.40.
In 2000, Mr. Wright received $45,506.66 in distributions from
STRS. The Form 1099-R issued to Mr. Wright for 2000 indicated a
taxable distribution in the amount of $44,511.26 and employee
contributions or insurance premiums in the amount of $995.40.
The $995.40 amounts listed on the Forms 1099-R represent a tax-
free recovery of previously taxed employee contributions to the
plan. STRS used the exclusionary ratios under section 72(b) in
calculating the amount of disability retirement benefits paid to
Mr. Wright attributable to his contributions to STRS.
Petitioners timely filed a joint Form 1040, U.S. Individual
Income Tax Return, for each of the years 1999 and 2000. On these
returns, they reported as taxable $19,278 and $26,707 of the
distributions received by Mr. Wright from STRS in 1999 and 2000,
2 Mr. Wright’s testimony on this point is contradictory. He
initially indicated that he contributed 12 percent and that the
six various school boards for which he worked contributed 8
percent in the latter years of his employment. But later in his
testimony, he indicated that he contributed 8 percent and the
school boards contributed 12 percent. It appears that the latter
testimony is his position based on Mr. Wright’s reaffirmation of
these percentage allocations during trial.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011