I completed my 2020 taxes on Turbo Tax through USAA. I lost my job due to covid and collected unemployment. I am also collecting Social Security. My manual calculation of the taxable portion of Social Security is approximately 5,000 less than was calculated by Turbo Tax. What is the correct amount?
Its not the taxable part of your unemployment...it's all of your unemployment that is used.
IF you print out the Social Security Benefits Worksheet , you'll see what numbers that the software uses...but I don't know what line your unemployment income is added into that form.
While a chunk of any unemployment is not included in taxable income anymore, it is still includable in your income for considering how much of your SS is taxable....did you do that?
yes, i did. my earned income plus my taxable portion of unemployment is only $22,000. I also made a contribution to my IRA that would reduce my gross income. I do not understand why Turbo Tax calculated that more than $7,000 of my Social Security is taxable.
Its not the taxable part of your unemployment...it's all of your unemployment that is used.
IF you print out the Social Security Benefits Worksheet , you'll see what numbers that the software uses...but I don't know what line your unemployment income is added into that form.