- 3 - 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...)Page: Previous 1 2 3 4 5 6 Next
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