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ProSeries Basic is including all unemployment benefits when calculating the taxability of social security benefits. This seems contrary to the instructions on the social security benefits worksheet line 3, which asks for ‘Schedule 1, line 9’. Am I misreading this?
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@rjh224 wrote:
This seems contrary to the instructions on the social security benefits worksheet line 3, which asks for ‘Schedule 1, line 9’. Am I misreading this?
You mean the worksheet that was created BEFORE the new law passed and has not yet been updated?
The new law specifically added "conforming amendments" to seven MAGI calculations (including Social Security) that says the $10,200 exclusion is not taken into account (in other words, they use the full amount of Unemployment).
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"Am I misreading this?"
Yes. The unemployment exclusion is ignored for the Social Security calculations.
Slava Ukraini!
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SS uses the full amount of UI benefits for its MAGI calculation.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Interesting since TurboTax Deluxe uses the lower AGI after the Unemployment Compensation Exclusion. Suggest further research. I had the same question coming off of Deluxe.
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@TaxGuyBill has the section code that shows ProSeries is doing it correctly, if TT hasnt updated their software for this yet, thats going to be problematic.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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@rjh224 wrote:
This seems contrary to the instructions on the social security benefits worksheet line 3, which asks for ‘Schedule 1, line 9’. Am I misreading this?
You mean the worksheet that was created BEFORE the new law passed and has not yet been updated?
The new law specifically added "conforming amendments" to seven MAGI calculations (including Social Security) that says the $10,200 exclusion is not taken into account (in other words, they use the full amount of Unemployment).
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OK that clears my issue. My thought was the program would have been adjusted adjusted when the revisions were released. The program calculations are correct, but confusing since the verbiage on the worksheet is incorrect.