My stimulus paymnet was misapplied by turbo tax

Ok ...  sadly YOU  entered the incorrect amount of the stimulus you got in advance so the credit was calculated incorrectly based off your input ... this is not a program error.   So when the IRS checked their records of what they sent you already against the credit you tried to claim they made the correction and either reduced your refund or sent a bill for the true balance due. The program told you to enter the exact amount you got in advance ... read the screen warning again...

So... if you never received a stimulus deposit or check—and the IRS records show  they paid you—then you should ask the IRS to trace your payment.  Many payments were sent and not cashed so a trace is the only option available to you.  Some were sent on debit cards that looked like junk mail and many folks thru them  in the trash.    If the payment was never cashed ONLY THEN can you send in an amended return to claim the credit and attach the findings letter with the 1040X form. 

The fastest way to initiate a trace is to contact the IRS by calling us at 800-919-9835.

You can also complete Form 3911:

• Write "EIP3" on the top of the form to identify the payment you want to trace.
• Complete the form answering all refund questions as they relate to your Economic Impact Payment.
• When completing item 7 under Section 1:
• Check the box for "Individual" as the Type of return
• Enter "2021" as the Tax Period
• Do not write anything for the Date Filed
• Sign the form. If you file married filing jointly, both spouses must sign the form.

You will generally receive a response 6 weeks after we receive your request for a payment trace, but there may be delays due to limited staffing.