@kylevv
The $10,200 unemployment exclusion does reduce your AGI. The reduced AGI is used to calculate the income limit for the Lifetime Learning Credit. I tested this and TurboTax seems to be doing the calculation correctly for the Lifetime Learning Credit. So you need to look more carefully at what is happening on your tax return.
Look at the actual tax forms, not the summary or review screens in TurboTax. TurboTax Online is somewhat limited in this respect, but you can preview your Form 1040 and Schedule 1. See the following FAQ for instructions.
How do I preview my TurboTax Online return before filing?
First make sure that you are actually getting the unemployment exclusion. It should appear as a negative number on Schedule 1 line 8. Then look at Form 1040 line 11. That's your AGI after subtracting the unemployment exclusion. Is it less than $138,000?
