@Manamok wrote:
I thought that taxable social security benefits would not be included when calculating the MAGI for the new Unemployment Compensation Exclusion yet Turbo Tax includes it when completing the Unemployment Compensation Exclusion Worksheet. Was I wrong or will TT be updated in the near future?
Thanks for any info provided.
The unemployment compensation exclusion is Not included when calculating the taxable amount of Social Security benefits. As noted by the IRS.
Go to this IRS website for the 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.
