- 3 - petitioner, respondent determined that petitioner’s disability benefits were taxable. Petitioners timely petitioned this Court. Discussion Petitioner contends that the disability benefits petitioner received under a workmen’s compensation act are not taxable because they were not paid by the Social Security Administration. We disagree. Gross income includes all income from whatever source derived unless excluded by a provision of the Internal Revenue Code. Sec. 61(a). Section 86(a) provides that gross income includes Social Security benefits in an amount equal to a prescribed formula.2 Social Security benefits mean any amount received by a taxpayer by reason of entitlement to a monthly benefit under title II of the Social Security Act. Sec. 86(d)(1)(A). Title II of the Social Security Act provides for disability benefits. See 42 U.S.C. secs. 401-434 (2000). Prior to 1984, disability payments received by a taxpayer who retired due to a permanent disability were excluded from gross income pursuant to section 105(d). The Social Security Amendments of 1983, Pub. L. 98-21, sec. 122(b), 97 Stat. 87, repealed section 105(d) and the limited exclusion of disability 2Petitioners have not challenged the formula provided in sec. 86(a).Page: Previous 1 2 3 4 5 Next
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