§ 86. Social security and tier 1 railroad retirement benefits
(a)
In general
(1)
In general
Except as provided in paragraph (2), gross income for the taxable year of any taxpayer described in subsection (b) (notwithstanding section 207 of the Social Security Act) includes social security benefits in an amount equal to the lesser of—
(b)
Taxpayers to whom subsection (a) applies
(c)
Base amount and adjusted base amount
For purposes of this section—
(1)
Base amount
The term “base amount” means—
(C)
zero in the case of a taxpayer who—
(i)
is married as of the close of the taxable year (within the meaning of section
7703) but does not file a joint return for such year, and
(d)
Social security benefit
(1)
In general
For purposes of this section, the term “social security benefit” means any amount received by the taxpayer by reason of entitlement to—
(2)
Adjustment for repayments during year
(A)
In general
For purposes of this section, the amount of social security benefits received during any taxable year shall be reduced by any repayment made by the taxpayer during the taxable year of a social security benefit previously received by the taxpayer (whether or not such benefit was received during the taxable year).
(B)
Denial of deduction
If (but for this subparagraph) any portion of the repayments referred to in subparagraph (A) would have been allowable as a deduction for the taxable year under section
165, such portion shall be allowable as a deduction only to the extent it exceeds the social security benefits received by the taxpayer during the taxable year (and not repaid during such taxable year).
(3)
Workmen’s compensation benefits substituted for social security benefits
For purposes of this section, if, by reason of section 224 of the Social Security Act (or by reason of section 3(a)(1) of the Railroad Retirement Act of 1974), any social security benefit is reduced by reason of the receipt of a benefit under a workmen’s compensation act, the term “social security benefit” includes that portion of such benefit received under the workmen’s compensation act which equals such reduction.
(4)
Tier 1 railroad retirement benefit
For purposes of paragraph (1), the term “tier 1 railroad retirement benefit” means—
(A)
the amount of the annuity under the Railroad Retirement Act of 1974 equal to the amount of the benefit to which the taxpayer would have been entitled under the Social Security Act if all of the service after December 31, 1936, of the employee (on whose employment record the annuity is being paid) had been included in the term “employment” as defined in the Social Security Act, and
(5)
Effect of early delivery of benefit checks
For purposes of subsection (a), in any case where section 708 of the Social Security Act causes social security benefit checks to be delivered before the end of the calendar month for which they are issued, the benefits involved shall be deemed to have been received in the succeeding calendar month.
(e)
Limitation on amount included where taxpayer receives lump-sum payment
(1)
Limitation
If—
(A)
any portion of a lump-sum payment of social security benefits received during the taxable year is attributable to prior taxable years, and
then the amount included in gross income under this section for the taxable year by reason of the receipt of such portion shall not exceed the sum of the increases in gross income under this chapter for prior taxable years which would result solely from taking into account such portion in the taxable years to which it is attributable.
(f)
Treatment as pension or annuity for certain purposes
For purposes of—
any social security benefit shall be treated as an amount received as a pension or annuity.