R.T. Cubbage Y.E. Cubbage v. United States
Opinion
Opinion
Bright, J.
Opinion by Judge BRIGHT.
Taxpayers R.T. and Y.E. Cubbage appeal the judgment of the district court denying them a tax refund. We affirm.
Neither party disputes the underlying facts. R.T. Cubbage retired in 1975 from service as an attorney with a railroad company. Prior to 1983, R.T. Cubbage received benefits equal to the contributions he made as an employee to the Railroad Retirement System [RRS], pursuant to the Railroad Retirement Act of 1974, 45 U.S.C. § 231 et seq.
The Cubbages brought this action seeking a refund of a portion of the income taxes paid on R.T. Cubbage’s 1988 Tier 2 railroad benefits. The amount of tax refund sought totals $144.00, which plaintiffs assert was based on Tier 2 benefits derived from contributions made by non-vested employees who would never receive benefits from the RRS.
On cross-motions for summary judgment, the district court denied plaintiffs’ motion and granted the Government’s motion, concluding that “the contributions to the Tier II railroad retirement trust fund are taxable except to the extent of the employee’s own contributions.” Cubbage v. United States, No. CV-91-1860-H, 1992 WL 189383 (D.S.Cal. filed May 28, 1992). In addition, the…