There is no reason the inherited IRAs should be treated any differently than your other retirement distributions for calculating the modified AGI to determine the amount of your social security that is taxable. If deleting and re-entering your 1099-Rs did not help, you can override the Modified AGI on Worksheet 1 to accurately reflect all your retirement distributions. Once you change that number, 85% of your wife's social security benefits should be taxable, rather than the slightly reduced amount that is now being reported.
