- 5 - provisions of section 86. Maki v. Commissioner, T.C. Memo. 1996- 209; see Ernzen v. United States, 875 F.2d 228 (9th Cir. 1989); Wallers v. United States, 847 F.2d 1279 (7th Cir. 1988). Section 61(a) provides that gross income includes all income from whatever source derived, unless excludable by a specific provision of the Code. Moreover, section 86(a), for the year at issue, provides that gross income includes Social Security benefits in an amount equal to a prescribed formula therein provided. Petitioner has not challenged the computation by respondent under this formula. The Court rejects petitioner’s contention that disability Social Security benefits constitute accident or health insurance under section 104(a)(3), or that the Social Security benefits come under the “umbrella” of the tax-exempt benefits he was receiving from the employer-sponsored insurance. The repeal by Congress of former section 105(d), which specifically provided for the exclusion from income of certain disability benefits and the enactment of section 86, with the section 86(d)(1)(A) provision that the term “Social Security benefits” includes benefits received under title II of the Social Security Act (which includes disability Social Security benefits), indicates quite clearly to the Court that Congress did not intend that 2(...continued) disability insurance benefit payments.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011