There is indeed a bug here, and it's a bit weird. If your AGI (on a joint return) is $127,800 (which is &138,000 - $10,200) or less, TurboTax correctly uses the reduced AGI from Form 1040 line 11 in calculating the Lifetime Learning Credit on Form 8863. The correct amount on Form 8863 is what made me think that TurboTax was doing it correctly. But before completing Form 8863, TurboTax does an internal calculation to determine whether you are eligible for the Lifetime Learning Credit. Apparently that internal calculation, which we can't see, uses your AGI before subtracting the unemployment exclusion, so it concludes that you are not eligible for the Lifetime Learning Credit, and never fills out Form 8863, where the correct reduced AGI would be used.
This bug would only affect a small number of people whose income is in a very narrow range, and who are claiming an education credit. That's probably why you haven't seen any other reports of the problem.
hbl3973 has alerted the forum moderators to the problem. At this point we have no idea how long it will take to get it fixed. If it looks like it's going to take a while, you can file an extension by May 17 that will give you until October 15 to file your tax return. However, the extension does not extend the time to pay. If you owe tax, you would have to pay by May 17 to avoid a penalty, even if you don't file until later.
