Support CenterSocial 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.
🔍 Social Security amount in Form 1040 is using the unemployment amount before the exclusion
Issue: Form 1040, line 6 for Social Security Benefits
Customer concern: The customer believes the unemployment benefits should not be included if they are excluded. However, on the Social Security benefits worksheet, the exemption amount is added back in.
⚠️ Before You Begin
This article explains why the unemployment compensation exclusion does not reduce the taxable Social Security amount in the way the customer expects.
📊 Explanation / Answer
Answer: This is accurate per the IRS. The unemployment compensation exclusion from the ARP was intended to not impact any MAGI calculations.
What we’re doing: 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.
Key point: 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.
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Tags: federal,form