@BillM223
Well, the version of the instructions for Form 1040 published one week ago now shows that the amount from Form 1040 line 10b is to be included on line 6 of the Social Security Benefits Worksheet. The fact that this deduction is in 62(a)(22) does cause it to be an above-the-line deduction like the others. It seems to be a loophole in the tax code that the lawmakers failed to address. So, TurboTax is behaving in accordance with the updated instructions for this worksheet.
Still, I believe that it's inequitable. Someone age 65 of over who has made $300 in charitable contributions and has $14,051 of other Schedule A deductions such that TurboTax uses the itemized deductions has $255 more of their Social Security income taxed and a $255 higher AGI affecting other calculations than does someone with only $14,050 of other Schedule A deductions and therefore causes TurboTax to use the standard deduction with $300 on Form 1040 line 10b. Few if any in this situation will figure out that they can lower their tax by overriding TurboTax's choice of using itemized deductions and use the standard deduction instead under these circumstances. Excluding the line 10b amount from line 6 of the Social Security benefits worksheet would restore equity. I guess it would take a technical correction by the lawmakers to restore equity.
I'll bet that I could manufacture an enhancement to the scenario above to increase the inequity substantially, factoring in things like a Retirement Savings Contributions Credit which depend on AGI, generating a tax liability difference of well over $600. I can imagine the questions: "Why did my tax liability increase by more than $600 when I entered an additional $1 of itemized deductions?"
