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Social Security amount in 1040 is using the amount of unemployment before the exclusion - Issue: 1040 line 6 for Social Security Benefits -Customer believe it should not include theunemployment benefits if they are excludedbut on the Social Security benefits wkt it adds the exemption amount back in.

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Answer: This is accurate per the IRS. The unemployment compensation exclusion from the ARP was intended to not impact any MAGI calculations. We are waiting on the IRS to update the worksheets, but in the meantime we have added back the UCE amounts to the MAGI calculations

 

You get to reduce your taxable income to not pay tax on the unemployment but you don't get to reduce your taxable social security by that amount.

Tags: federal,form