Case: Not including social security disability benefits in income despite private plan offset (TC Bench) (IRC §86) – Community News
Social Security

Case: Not including social security disability benefits in income despite private plan offset (TC Bench) (IRC §86)

January 13, 2022, 5:00 AM

Social Security disability benefits must be included in gross income under IRC §86, the US tax judge ruled in an opinion published on the court’s website on Jan. 13. The court ruled that the taxpayer’s Social Security benefits plus her taxable income exceeded the base amount in §86 and thus 85% of her benefits must be included in income. On her return, the taxpayer erroneously calculated the taxable portion of her Social Security benefits by looking at the total potential disability benefit from her employer-provided disability plan, before compensating for the required Social Security benefit for disability, the court concluded.[[[[[Murphy v. …