@Anonymous wrote:
Upon installing today's most recent software update, I discovered that the Social Security Benefits Worksheet 2020 doesn't incorporate the American Rescue Plan's UCE unemployment compensation exclusion for 2020 and its resulting lower amount, even though it still states that the amount comes from Schedule 1 line 9. This error results in a higher taxable SS benefit amount.
The unemployment exclusion is NOT included on the SS worksheet as noted by the IRS.
IRS website - https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation
When figuring any of the following deductions or exclusions, include the full amount of your unemployment benefits reported on Schedule 1, line 7 (unreduced by any exclusion amount): taxable social security benefits, IRA deduction, student loan interest deduction, nontaxable amount of Olympic or Paralympic medals and USOC prize money, the exclusion of interest from Series EE and I U.S. Savings Bonds issued after 1989, the exclusion of employer-provided adoption benefits, the tuition and fees deduction, and the deduction of up to $25,000 for active participation in a passive rental real estate activity.
