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2000-281. Subject to exceptions not relevant here, modified
adjusted gross income means adjusted gross income (AGI).
Petitioners filed a joint return and reported AGI of
$76,633. Adding one-half of the $13,524 of the Social Security
benefits to the reported AGI yields a total of $83,395. Because
this amount exceeds $44,000, petitioners must include up to 85
percent of the Social Security benefits in gross income.
Petitioners do not dispute that their AGI exceeded $44,000.
Petitioners argue, however, that only the income of the recipient
of Social Security benefits is relevant for purposes of section
86. Petitioners note that section 86 refers to “taxpayer” in the
singular and not “taxpayers” in the plural. For example, section
86(b)(1)(A)(i) refers to “the modified adjusted gross income of
the taxpayer”. Petitioners contend that Mr. Goldfarb’s income
therefore should be excluded from AGI in applying the formula
under section 86. Because petitioner’s income alone did not
exceed $44,000, petitioners contend, a lesser amount of Social
Security benefits is taxable. We disagree.
“In determining the meaning of any Act of Congress, unless
the context indicates otherwise--words importing the singular
include and apply to several persons, parties, or things”. 1
U.S.C. sec. 1 (2000). This rule applies “where it is necessary
to carry out the evident intent of the statute.” First Natl.
Bank in St. Louis v. Missouri, 263 U.S. 640, 657 (1924); Pope &
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Last modified: May 25, 2011