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calculated that his taxable Social Security benefits for 2003
were $1,3761 and reported that amount on his 2003 tax return.
Respondent determined that petitioner’s taxable Social Security
benefits totaled $10,216.15, $8,840.15 greater than the amount
reported by petitioner.
Discussion
Petitioners contend, inter alia, that the Workers’
Compensation benefits petitioner received from DOL are not
taxable because they were not paid by the SSA.2 We disagree.
1The SSA letter petitioner used to calculate his taxable
Social Security benefits states that petitioner’s monthly Social
Security benefits for 2003 would be $192.70, minus a $58.70
deduction for Medicare, resulting in $134 to be deposited in
petitioner’s bank account each month.
It is unclear how petitioner determined his taxable Social
Security benefits totaled $1,376, because $134 multiplied by 12
months equals $1,608. We note that $192.70 multiplied by 12
months equals $2,312.40, and that the difference between
petitioner’s $12,019 net Social Security benefits and the $9,706
paid by DOL is $2,313.
2Petitioners also contend that the issue in the instant case
was previously decided in their favor in a Tax Court case at
docket No. 22889-04S regarding their 2002 taxable year.
Petitioners also rely on a letter from respondent’s Appeals
Office dated Mar. 8, 2005, implying that respondent wrongly
included petitioner’s workers’ compensation benefits in
determining petitioners’ Social Security benefits for 2003.
We note that respondent and petitioner signed an agreed
decision in the case at docket No. 22889-04S based on what
respondent now contends was an erroneous conclusion by
respondent’s Appeals Office. We also note that after
respondent’s Appeals Office realized the error contained in the
Mar. 8, 2005, letter to petitioners, respondent’s Appeals Office
sent another letter dated July 18, 2005, to petitioners informing
(continued...)
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