Thank you again for your reply. Line 3 of the SS benefits worksheet indicates only the Form 1040 lines (1,2b,3b,4b,5b,7, and8). It does not say to use any lines on Schedule 1. And line 8 of Form 1040 is from line 9 of Schedule 1, which now includes the 10,200 credit. But I think you are right that the taxable SS income would not take into consideration of the 10,200. It is just that the Exclusion instructions are still not clear to me.
So to summarize, please confirm the followings:
- social security taxable income - do not include the $10,200 credit; the $ on line 3 of the SS benefits worksheet generated by TurboTax is correct.
- passive income limit - do not include the $10,200 credit; the $ (MAGI) on line 7 in Form 8582 generated by TurboTax is correct
- taxable income to determine QBI deduction - includes the $10,200 credit since it is based on the adjusted gross income on line 11 in Form 1040 (which is lowered by the $10,200 credit); so the taxable income on line 11 in Form 8995 generated by TurboTax is correct.
Thank you.
