The above statement is how I have been preparing returns for clients with taxable social security benefits and with UC. I have had the IRS correct 2 returns stating that the taxable amount of social security benefits were calculated incorrectly. Clients provided the letters they received from the IRS and the IRS correction is taxable social security benefits calculated using the net unemployment benefit after the exclusion.

I have updated my program and rerun error check, and my pen and paper calculations and the returns are correct as filed.

Did I miss a memo or is this happening to others. I informed the clients to put the extra refund amount aside, as the IRS may come looking for it at a later date.

Thank you for any feedback on this issue.