Interesting saga here. I received stimulus two checks - one in Dec,2020 for $2400 and one in Jan, 2021 for $1200. When filing (turbotax Self employed version online) I was given two choices for stimulus checks received - both 2020 and 2021. As the second check was dated 2021 I did not want to pay include it on my 2020 return, so I chose the radio button for the first refund only. So my return was accepted by IRS and I had a refund coming of $716. Fast forward 3 months and I get a letter from IRS stating I made a "miscalculation" on 2020 form 1040sr, Recovery Rebate Credit. and they conveniently "we changed your return" and now I owe $484. Which equals the $1200. so I called the IRS. I thought stimulus checks were not taxable. Well turns out I wasnt taxed on this but had a line 30 credit which should not have been there and they corrected it.
Unbeknowing to me, TT placed a line 30 Recovery rebate credit of $1200 because I did not acknowledge it (or admit it to my 2020 return). That is a TT mistake. That is not a credit that I am taking. Or IF that is what they need to do . . .. they need to explain it to person filing out their online form. Now I have a tax bill due of $484! Not good for TT. TT should refund the price I paid for their product because this was their mistake.
