Tax Court Says Disabled Worker Underreported Income

The U.S. Tax Court ruled that a woman underreported her taxable Social Security benefits by omitting the portions subject to a workers' compensation offset. Case: Ecret v. Commissioner of Internal Revenue, No. 5238-22, 02/14/2024, published. Facts and procedural history: Kristen Ecret worked as a registered nurse until 2014. That year, she became disabled by an on-the-job injury and began collecting benefits through New York’s workers’ compensation system. She received approximately $42,000 in benefits annually. In 2015, Ecret applied to the Social Security Administrati...