@coachalan1941 wrote:
Hi - As the $10,200 reduction affects Other Income on Line 8 of the 1040, it reduces the AGI by the same amount so shouldn't it also reduce the percentage of Social Security taxable as the percent taxable is a factor of AGI? The IRS calculation doesn't seem to do this. Thanks, Alan Hartman
The unemployment exclusion is Not included to calculate taxable Social Security benefits as noted by the IRS.
Go to this IRS website for the exclusion statement - 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.
