@wdunn wrote:
I am not a tax person so i am waiting to see how Turbo handles this. But i was wondering when do you do the Social Security worksheet and will it lower my SS taxed income. If line 8 on 1040 is reduced then my total income on line 9 changes. This changes my taxable income on line 6b when i do the SS worksheet. I'm i right or wrong?
Those of us who have actually read the law believe that even though the first $10,200 of UEC is excluded from taxable income, it is still included in the calculation of taxable social security. There are a series of carve-outs and exceptions in the law, and this was also posted someplace on the AARP web site.
However, the ultimate final confirmation would come whenever Turbotax is reprogrammed for the change, since the reprogramming has to be tested and approved by the IRS. One news site says Turbotax will be updated tonight or tomorrow, but I don't have official word on that.
