@pk
Now looking at this again it appears in order to get to the correct MAGI for Line 13 of Form 8960 the preparer has to remember the list of excluded items of income at the start of the instructions when they read the instructions to Line 13. The instructions for Line 13 make no mention of this list. It only says
Line 13—Modified Adjusted Gross
Income (MAGI)
If you didn’t exclude any amounts from
your gross income under section 911 and
you don’t own a CFC or PFIC, your MAGI
is your AGI as reported on Form 1040 or
1040-SR. If you exclude amounts under
section 911 or own certain CFCs or
PFICs, your MAGI is your AGI as modified
by certain rules described in Regulations
section 1.1411-10(e)(1)
When I read the instructions I simple skipped the beginning (where there is a list of excluded income items like social security to calculate net investment income) and went straight to the instructions for Line 13 (which shows how important it is to read ALL of the instructions). The instructions for Line 13 make no mention that I can see (maybe I am reading them wrong) of excluded income items beyond the above. One would have to remember the list at the beginning and include that in the instructions for Line 13 even though the specific instructions for line 13 dont include that. Maybe that is why turbotax and at least another tax software program as mentioned in another reply, are incorrect.
