Calculating taxable Social Security benefits with UCE exclusion

[lajtax]

In IRS Publication 915 (Social Security and Equivalent Railroad Retirement Benefits) the instructions for Worksheet 1, Line 3 state to include the amount from Form 1040, Schedule 1, Line 9 to calculate taxable Social Security benefits and to also include certain exclusions, namely those received for adoption benefits, foreign earned income or housing and certain income of residents of American Samoa. So these listed exclusions are added back for the purposes of calculating taxable Social Security benefits. Not listed as includable is the recent $10,200 exclusion for state unemployment benefits received which reduces Form 1040, Schedule 1, Line 9, in some cases, to zero. My tax software added the $10,200 exclusion to the Worksheet 1, Line 3 amount but reading the Publication 915, Worksheet 1, Line 3 instructions indicates that the $10,200 should not be included.

I have to believe my tax software is correct but I'd like other opinions. Thank you.

LAJTax

[TaxGuyBill]

In IRS Publication 915

You mean the publication that was released BEFORE the new law came out? :-)


The new law specifically has a "conforming amendment" that says you don't factor in the $10,200 exclusion (you use the FULL amount of Unemployment) to calculate the amount of taxable Social Security.