Here are some additional facts concerning the incorrect calculation of Social Security benefts from my initial post:
husband medicare age / wife younger
filing status joint
husband and wife each have small business so maximum SEP contributions made for each/ net earnings enough for cover maximum IRA contributions
self employed health deduction on husband's business
wife has ObamaCare high deductible plan so maximum HSA contribution made for her coverage.
both husband and wife each qualify for maximum IRA contribution and they are made
husband receives SS benefits
husband receives IRA distributions / fully taxable / no IRA basis
When I remove the IRA contribution for husband....the calculation for taxable SS benefits appears correct...when I add it back...the amount of the IRA distribution isn't included in the modified adjusted gross income on the special worksheet which results in an understatement of taxable SS benefits.
I hope someone can duplicate my observation. I think I might have found a bug in the program. Or maybe I am overlooking something??? or maybe I am getting too old for this business:-)