I was shown the recovery rebate credit page while I did my taxes but I didnt understand what it was and unfortunately I skipped it and it took $1400 out of my taxes. How can I get my money back from a stimulus that was said to be tax exempt but was taxed from me to begin with? Also I was never given the option to accept or decline the stimulus payment it was directly deposited into my bank account. Please help I need this money.
The stimulus payment is NOT being taxed and you cannot get both the advance and the credit ... the method the program uses of giving you the credit then taking is back is not the most user friendly and can be confusing ...
The computation of the Recovery Rebate Credit is a two-step process. You are able to observe what is happening at each step on line 30 of your Federal 1040.
Early in the program, TurboTax software computes whether you qualify for the $1,400 third stimulus check and gives you immediate credit for the third stimulus check.
You are able to view this Recovery Rebate Credit on line 30 of the Federal 1040 under Tax Tools / Tools / View Tax Summary / Preview my 1040.
You enter the third stimulus check actually received
Then the Recovery Rebate Credit on line 30 becomes $0. You may also view this under Tax Tools / Tools / View Tax Summary / Preview my 1040.
If you didn't claim the credit on your original tax return you will need to file a Form 1040-X, Amended U.S. Individual Income Tax Return, to claim it.
The IRS will not calculate the 2021 Recovery Rebate Credit for you if you did not enter any amount on your original tax return, or you entered $0.
Use the Interactive Tax Assistant, Should I File an Amended Return?, to help determine if you should amend your original tax return.
For instructions see How to amend (change or correct) a return you've already filed.