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In some cases the TurboTax software assumed that you did not receive any stimulus payment and added the amount of both payments to your refund. Then when you answered Yes to question about whether you received a stimulus and put in the amount of the stimulus, that amount was deducted from your refund.
It is not a tax on the stimulus payment, it was to avoid a double payment.
This a question I'm sure many people have on their minds when seeing this drastic decrease in the refund amount. I was confused at first, but it makes sense. This was poor communication on how these payments would affect all of us when filing. @MaryM428
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