Form 8960 (Net Investment Income Tax – Individuals, Estates, and Trusts) used for the 3.8% surtax on investment income for the Affordable Care Act. It first appeared in tax year 2013.
If you have income from investments and your modified adjusted gross income (MAGI) exceeds $200,000 for individuals, $250,000 for spouses filing jointly, and $125,000 for spouses filing separately, we'll include Form 8960 with your return.
Form 8960 (Net Investment Income Tax – Individuals, Estates, and Trusts) used for the 3.8% surtax on investment income for the Affordable Care Act. It first appeared in tax year 2013.
If you have income from investments and your modified adjusted gross income (MAGI) exceeds $200,000 for individuals, $250,000 for spouses filing jointly, and $125,000 for spouses filing separately, we'll include Form 8960 with your return.
Yes, the 8960 form comes up in my preparation. However the total modified gross comes uo wrong in my case. The modified adjusted gross "should not" include Social Security Benefit as it does in my case. If the adjusted gross was reduced my the amount of SS Benefit, I would not be owing Investment tax
Yours is the only post I have seen in several years for this situation so save a copy of the return as a PDF and look for the worksheet for that form to see how the calculation is being done.
After doing a thorough search, I believe the the AGI is taken directly from the 1040, line 11, and is moved to the form 8960, line 13 for calculation. I maintain that there should be a line whereas the excluded items could be subtracted and Social security benefit is one of the excluded items.
The worksheet & instructions for line 13 do not support your position ... the program is correct :
I know the Turbo Tax work sheet does not support. However, if you go to the IRS Instructions for form 8960. -Under excluded Income, you will find "Examples of excluded items" =One of the listed items is Social Security Benefits.
https://www.irs.gov/pub/irs-pdf/i8960.pdf
You are just reading the definitions listed in the beginning of the instructions which doesn't have anything to do with the line 13 instructions later in the document. The excluded income definition is used for calculating line 18b. If you use the Adobe Reader's FIND tool for "excluded income" you will see that only shows up 3 times in the entire document.
The TT program is really good at following the IRS instructions but if you still want to discuss this ...
Please use the following link to contact Customer Support for further assistance.
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632