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K
kimplummer
February 1, 2021
Question

Why did my refund decrease after I entered stimulus check info?

  • February 1, 2021
  • 2 replies
  • 0 views
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2 replies

J
JohnW152
February 1, 2021

When you begin entering your information into TurboTax, the program assumes that you haven't received stimulus payment, so it begins by with the assumption that you're eligible for the maximum amount, based on the initial information you've entered.

When you enter the amount of stimulus you've actually received, it adjusts your refund to account for that.

The IRS requires you to report all relevant stimulus information when you’re filing your return.

    W
    Whizkid151
    February 25, 2021

    I'm using TT Deluxe 2020 from Costco (CD). Checked for all updates. TT still doesn't give me anywhere to enter the amount of stimulus I received (full amount ). It's doubly important as I live in a state w/ state income tax. Wouldn't want to short them on their slice. Also discovered a seemingly endless loop in CSA-1099-R input. I've never experienced this many flaws. ?????

    J
    JamesG1
    February 25, 2021

    TurboTax still does not give me anywhere to enter the amount of stimulus I received.

     

    If you have not received one or both of your stimulus checks, you will receive your payment in the form of a Recovery Rebate Credit on line 30 of your 2020 Federal tax return when you file.

     

    TurboTax will compare your one or two stimulus payment amounts to the computations within TurboTax.  The computations within TurboTax are based upon the information that you have entered into the tax software.  If you are due an additional amount, it will be issued as a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return.

     

    In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen.

     

    You can access your stimulus check choices by following these steps: 

    • Down the left side of the screen, click on Federal.
    • Across the top of the screen, click on Other Tax Situations.
    • At the screen Let’s keep going to wrap up.  Click on Let’s keep going.
    • At the screen Let’s make sure you got the right stimulus amount, click Continue.
    • At the screen Did you get a stimulus payment? you can update your stimulus check entries.

    See also this TurboTax Help.

     

    Why did my refund decrease after I entered stimulus check info?

     

    Before you enter the amount of the stimulus payments at the screen Did you get a stimulus payment?, you have been given the full Recovery Rebate Credit (the equivalent of the two stimulus payments).   This can be found on line 30 of the 2020 Federal tax return.  At this point, this is an 'incomplete' Recovery Rebate Credit.

     

    You can see this on the screen Great news! You qualify for the stimulus credit.  The amount is displayed in the center of the page.

     

    After you enter stimulus payment 1 and stimulus payment 2, the credit is offset by the stimulus payments and the 'incomplete' Rebate Recovery Credit is reduced or eliminated.

     

    See this TurboTax Help.

     

    I discovered a seemingly endless loop in CSA-1099-R input.

     

    Recommend deleting the entry and re-entering.

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      L
      Lori601
      April 6, 2021

      If it isnt taxable, we shouldnt have to add it on taxes. their getting all their money back, so we werent given a thing. haha. doesnt take a brain to figure that out.

      J
      JotikaT2
      April 6, 2021

      It isn't taxable actually.  

       

      The stimulus checks have no bearing on the income reported on your tax return.  However, it is used to calculate the Recovery Rebate Credit which is why it is needed when you prepare your income tax return.  

       

      The Recovery Rebate credit is calculated on your 2020 income tax return and is dependent upon what was entered into the program. If you were eligible for both stimulus payments but did not receive them or received less than you were entitled to, you would have received the credit if you met all of the other requirements. 

       

      The amount of this credit is used to offset any existing tax due.  If there is excess credit remaining after being applied to your tax due, you will be refunded for the excess amount.

       

      Please see the attached link for more information on who can claim the credit.

       

      Recovery Rebate Credit eligibility

       

      @Lori601

      **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
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