- 6 - modified adjusted gross income5 plus one-half of her Social Security benefits exceeds certain threshold amounts. In the case of a head of household return, when this sum exceeds $25,000, the lesser of 50 percent of such excess or 50 percent of the Social Security benefits must be included in gross income. Sec. 86(a)(1), (c)(1)(A). Petitioner’s reported modified adjusted gross income for 2003 was $18,349.6 As found above, petitioner must include $2,800 in gambling winnings in her gross income, which increases her modified adjusted gross income to $21,149. The sum of petitioner’s modified adjusted gross income and half of her Social Security disability benefits7 equals $26,305. Because this amount exceeds $25,000, we hold that petitioner must include $653 of her Social Security benefits in her gross income for 2003.8 See sec. 86(a)(1), (c)(1)(A). 5 As applicable to the instant case, modified adjusted gross income is the taxpayer’s adjusted gross income plus deductions for qualified tuition and related expenses. Sec. 86(b)(2)(A); see also sec. 222. 6 Petitioner reported adjusted gross income of $15,349, to which her $3,000 deduction for qualified tuition and related expenses was added to determine her modified adjusted gross income. See sec. 86(b)(2)(A). 7 Half of petitioner’s Social Security benefit ($10,312 in total) equals $5,156. 8 $26,305 less $25,000 equals $1,305. Fifty percent of $1,305 equals $652.50.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011