I am sorry to inform you but you are incorrect. Even social security as well as the legal department in the IRS clearly stated that the exclusion of 10,200 is not included in the worksheet calculating taxes that you would pay on your social security. There is definitely an error within Turbo Tax but it is too technical to comprehend for most as I was told. So, when doing the worksheet, it does in fact exclude the 10,200. Another individual posted exactly how to correct the error by going into your return, clicking on Data Source and changing the total amount of income that is calculated to reflect a deduction of the 10,200.
Think about it...the federal government excluded this amount at the last minute basically and no one's system was ready for it. As I was told, they would not exclude it from federal without also excluding it from social security for the amount you would be taxed (key word) and have to pay out of your social security for an amount that is excluded from your federal tax returns which includes social security. They won't credit you on one end and then tax you on the other. So, according to the IRS legal department (yes I got transferred 3 times before I got a correct answer), it is "excluded and if the excluded $10,200 is included in my social security worksheet used to calculate the taxes I would pay on Social Security widows benefits then I have to amend my return to exclude it in my calculations." I hope this helps settle the 'debate'
