Question

When I entered in our stimulus, the amount due for state taxes increased. I thought the stimulus payments wouldn't effect taxes. The amounts were correct. Am I incorrect?

Forum|Forum|5 years ago
February 2, 2021
1 reply
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TurboTax Deluxe Online

When you started your return in some versions of TurboTax, the software assumed that you did not receive any stimulus payments. So it started your return with both of the stimulus payments added to your refund.

When you then told TurboTax that you have received the payment or payments, it deducted that amount from your refund so that it was not a double payment.

There is no tax on the stimulus payments, but in some cases the refund goes down by the amount of stimulus payments have already been received.

[edited 2/1/2021 | 07:55 pm PST]

J

jc_penny

Employee

MaryM,

That's not the way Premier does it.... so far. When I got to the end and entered the numbers the report was that I got paid what I should have and nothing else changed. I suspect the issue has more to do with reporting a stimulus not in agreement with the software's algorithm

God forbid I'd go through the tax prep seeing my meager return this year only to see it turn into a huge debt because "I already got it."

Please check your sources.

MaryM428

You are correct that Premier does not start out with the stimulus as a refund like Deluxe does. I will update my response. Thank you for pointing this out, I was not aware.

@jc_penny