Case Study: Flat-rate Social Security Benefits Excluded from Gross Income Added to Determine Your Eligibility for Premium Tax (TC Memo) (IRC §36B) – Community News
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Case Study: Flat-rate Social Security Benefits Excluded from Gross Income Added to Determine Your Eligibility for Premium Tax (TC Memo) (IRC §36B)

Benefits & Executive Comp

Nov 9, 2021, 5:00 AM

Flat-rate Social Security benefits, excluding from gross income when creating a tax code Section 86(e) election, is added again to determine whether you qualify for tax credits (PTC), the US tax judge ruled in a memorandum opinion. For the tax year in question, taxpayers received social security benefits, part of which as lump sum payments from the previous two years. Taxpayers had health care policies through a state grant for part of the year, depending on the spouse. Premium tax credits (APTC) helped pay the premiums. Taxpayers reported only $5,000 of the $50,000 Social Security benefits as taxable. …

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