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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.
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