Re: Social Security Benefits Taxes?


Richard Macdonald wrote:
> <KEBSCHULLW@xxxxxxx> wrote in message
> news:1138301664.697279.208060@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> >
> > The "monstrous moral outrage" is the IRS's attempt to cover-up and
> > paper over the fraudulent inclusion of itemized deduction recoveries in
> > the calculation of taxable Social Security benefits. See section 111(a)
> > of the Internal Revenue Code.
>
> Code Sec. 111. Recovery of tax benefit items
> (a) DEDUCTIONS
> Gross income does not include income attributable to the recovery during the
> taxable year of any amount deducted in any prior taxable year to the extent
> such amount did not reduce the amount of tax imposed by this chapter.
>
> Section 111(a) makes absolutely no reference to Social Security and no
> matter how much Social Security is taxed, the amount of taxable recovery,
> will NEVER CHANGE. Your assertion that 111(a) has any bearing on
> Taxable Social Security is specious and has no basis.

lil' dickie:

Section 111(a) does not have to reference the calculation of taxable
Social Security benefits because it is GROSS INCOME that is
ATTRIBUTABLE to the RECOVERY that is limited by section 111(a).

Including an ITEMIZED DEDUCTION RECOVERY in the calculation of taxable
Social Security benefits can result in the GROSS INCOME ATTRIBUTABLE to
the RECOVERY EXCEEDING the amount of the RECOVERY by up to 85 percent.
This result is prohibited by 26USC111(a) because the EXTENT that an
ITEMIZED DEDUCTION can reduce TAXABLE INCOME CANNOT EXCEED the amount
of the deduction. Therefore, the GROSS INCOME ATTRIBUTABLE to a
ITEMIZED DEDUCTION RECOVERY cannot exceed the amount of the RECOVERY by
the terms of section 111(a)..

It would be redundant to make a reference to Social Security in section
111(a) of the IRC.

Got it now?

Cheers,
WDK

>
> Now I do agree that recoveries of below the line (after AGI) deductions
> should not be included in the calculation of Taxable Social Security as
> they would have been deducted from AGI in prior periods AFTER any
> amount of Taxable Social Security was calculated, but that is a function
> of 26USC86 and not 111 and is the fault of Congress who wrote the
> current statute that included recoveries in the calculations, and not the
> IRS.
> So until you can show any citation of SOCIAL SECURITY in
> 26USC111, your assertion is baseless.

.

Relevant Pages

  • Re: Same old 111(a) nonsence (sic) from Richard A. Macdonald CPA/EA
    ... About 14 billion dollars of Social Security payments come from taxes ... recovery of items previously deducted. ... You see the tax attributable to taxable Social Security goes to ... of itemized deduction recoveries in the calculation of taxable Social ...
    (misc.taxes)
  • Re: Social Security Benefits Taxes?
    ... >>> the calculation of taxable Social Security benefits. ... Recovery of tax benefit items ... > Including an ITEMIZED DEDUCTION RECOVERY in the calculation of taxable ...
    (misc.taxes)
  • Re: IRSs Multi-Billion Flimflam: "Double or Nothing" Taxation of Tax Refunds
    ... >>> attributable to an itemized deduction recovery being included in gross ... >> That it is attributal to the receipt of Social Security and to to the ... > deduction recoveries in the calculation of taxable Social Security ... >> added to Gross Income, it will not increase your Taxable Social ...
    (misc.taxes)
  • Re: IRSs Multi-Billion Flimflam: "Double or Nothing" Taxation of Tax Refunds
    ... >>> The potential taxability of Social Security is established by the ... >>> receipt of Social Security benefits. ... >>> deduction recoveries in the calculation of taxable Social Security ... >>> deduction recoveries than other taxpayers all other things being equal. ...
    (misc.taxes)
  • Re: IRSs Multi-Billion Flimflam: "Double or Nothing" Taxation of Tax Refunds
    ... >>> The potential taxability of Social Security is established by the ... >>> receipt of Social Security benefits. ... >>> deduction recoveries in the calculation of taxable Social Security ... >>> deduction recoveries than other taxpayers all other things being equal. ...
    (misc.taxes)