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Deductions & credits
The section of the American Rescue Plan Act that provides for the exclusion of $10,200 of unemployment compensation specifically says that the excluded unemployment income is NOT to be subtracted from AGI when calculating the taxable amount of Social Security benefits. So TurboTax is doing the Social Security calculation correctly according to the new law, and it is not going to change. The exclusion of unemployment income does not change the amount of Social Security that is taxable.
March 29, 2021
8:19 PM