Incorrect. Those who so not fill out the social security form do not have a clue. Even the irs (legal department) stated to file an amendment because the 10,200 IS affecting our taxable amount paid and IS affecting EITC. Yes unemployment is not considered as earned income but it is being calculated as such in all tax software systems and it is not excluding the 10,200.
anyone affected by this needs to file an amended return to not include the 10,200 and the IRS will adjust it accordingly. Do not assume the IRS will fix your return because they are not catching this huge error. This information came directly from the irs. Think about it…it’s excluded from taxes on one end (more common filers) but not the other meaning SSI (less common filers), so the irs didn’t think this completely through and therefore those who filed and were affected by paying higher taxes on SSI need to file an amended return.
I’ve seen what turbo tax is saying in the instructions they got from the irs but that is incorrect per the irs legal department.
