The turbotax program is deducting $600 out of my refund because of the stimulus. IRS told me in no way should it affect my return. That Turbotax is in error, why?

Forum|Forum|5 years ago
March 7, 2021
7 replies
38 views

Every year I ALWAYS get over $1,000 back from my taxes. When the program asks how much stimulus i received and I enter the amount in drops by exactly$600. As I have stated, I contacted the IRS on this matter and they assured me that the tax preparation service (Turbotax) I am using is in error. What is the story here?

TurboTax Deluxe Online

VolvoGirl

Level 15

You are not paying tax on them. But Turbo Tax started out by assuming you didn't get it and giving you credit for the whole amount so your refund was too high to begin with. Then when you entered what you already got the starting refund was reduced or the tax due increased. Otherwise you would be getting the Stimulus amount again on your tax return.

Look at your return. The Stimulus payments do not show up anywhere as taxable income so you are not being taxed on it.

donkoury

Level 2

Why is turbo tax assuming and adding to your account. All turbo tax should do is ask if you got the simulus check and not assume you already got it . Very confusing when doing taxes.

This will be the last year I use Turbo Tax and they make very confusing