To be clear here are the IRS instructions about the social security taxable income and the unemployment benefit exclusion. You two questions above are also answered here for you.
When figuring the following deductions or exclusions from income, if you are asked to enter an amount from Schedule 1, line 7 enter the total amount of unemployment compensation reported on line 7 (unreduced by any exclusion amount) and if you are asked to enter an amount from Schedule 1, line 8, enter the amount from line 3 of the Unemployment Compensation Exclusion Worksheet.
- Taxable social security benefits (Instructions for Form 1040 or 1040-SR, Social Security Benefits Worksheet)
- The deduction of up to $25,000 for active participation in a passive rental real estate activity (Form 8582)
- QBI is not mentioned so therefore, at least for now, it will still use taxable income to determine the allowable deduction.
- This IRS page as not been updated since the American Rescue Plan Act has passed.
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