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Taxable social security benefits

BD
Level 1

After the program update for the exempt unemployment benefits (UCE) it is including the exempt portion in calculating taxable social security benefits although the worksheet says use Line 9 of Schedule 1 which is after the exemption amount. Anyone know if the program is wrong or if the Act requires you to add this back in figuring taxable portion of social security benefits ?

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9 Replies 9
janine
Level 3

Great detective work.  I do not have an answer to that situation.  Can someone help  jump in to answer this?

 

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nrp
Level 2

I had that same question arise yesterday.   The instructions for Line 6b Form 1040 (Taxable Social Security Benefits) have not changed as far as I can see.

It would be nice if someone could clarify this,  Im sure it will affect many returns going forward,

And more than likely if I get through to IRS they wont know any more than we do.

 

.

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janine
Level 3

LOL this is so true

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Eddie903
Level 3

Same issue, glad to know I'm not crazy

 

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TaxGuyBill
Level 14
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nrp
Level 2

the worksheet in proseries should reflect what is included in AGI for taxable social security benefits with the new UCE.     And the IRS website should update the worksheet to reflect the changes so us taxpreparers, as well as taxpayers are aware of the changes

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nrp
Level 2

this is besides the point, but it doesnt seem fair to the SS recipients.   The new UCE has a positive effect on EIC so I cant figure out why it wouldnt have a positive effect on the SS recipients.

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TaxGuyBill
Level 14

I assume they eventually will update the worksheets.  But it takes TIME to do all of that.  Be patient.

As far as being "fair" or not, that is how Congress wrote the law.  If you don't like how the law was written, you have the right to complain to your congressional representatives.

 

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nrp
Level 2

That is true, that is how Congress wrote the law,    like it or not

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