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WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

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21 Replies

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

The stimulus check is an advance on a credit you can receive on your 2020 tax return.  If something went wrong or you did not get the stimulus check in 2020, you can get it when you file your 2020 return in early 2021

The Recovery Rebate Credit will be found in the FEDERAL REVIEW section. ( you should see "Let's make sure you got the right stimulus amount”)  If you are eligible it will end up on line 30 of your 2020 Form 1040.

 

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

 

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

 

 

 

IT TOOK MY STIMULUS MONEY AWAY

 

You might have become confused by the flow of information in the software.   That "refund monitor" on your screen displays a "refund" amount that includes the stimulus money. as part of your 2020 refund.   But later when you enter the amount of stimulus you really received already, it removes the stimulus already given to you.   And it looks to you like you "lost" your refund,   But ---you do not get the same stimulus money twice--that is why it came out.

 

 

 

Look on line 30 of your Form 1040 for your recovery rebate amount.

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

Your 2020 return starts out by assuming you didn't get any Stimulus payment so it gives you the full amount.  Then near the end you enter how much you actually got so it only gives you the difference if any.  You don't get it twice.

           

Check line 30.  The Recovery rebate credit is on 1040 line 30.  It either adds to your refund or reduced a tax due.

 

Before filing,  You can preview the 1040 or print the whole return

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

roodaar26
New Member

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

I entered exactly what we received, so if I enter that I received $1450, why would you subtract that amount from my refund when I already received it.  If the stimulus was something we did not have to repay then why are you taking it out of my refund.

JotikaT2
Employee Tax Expert

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

It probably wasn't being subtracted from your refund.

 

The stimulus payments are not taxable.  However, if you had not put in your stimulus payments before, your return was calculating the Recovery Rebate Credit and that was generating a higher refund.  

 

The amount of the Rebate Recovery Credit is based upon your actual 2020 income tax return you file.  Therefore, if you meet the criteria for the credit, you will receive it when you prepare your 2020 income tax return.  The credit is intended to give those who should have received a stimulus payment but never did a tax credit on their tax returns.  Any excess credit is then refunded to you if there is an overpayment on your tax return.

 

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

 

Recovery Rebate Credit eligibility

 

When you entered your stimulus payment actually received, it removed the Recovery Rebate Credit as you would not be entitled to it.  Therefore, your return is back to its actual refund amount.  

 

@roodaar26

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WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

@roodaar26 

 

Your 2020 return starts out by assuming you didn't get any Stimulus payment so it gives you the full amount.  Then near the end you enter how much you actually got so it only gives you the difference if any.  You don't get it twice.  This is a poor layout of the program interview flow and the credit should not have been addressed until the screen where you enter the amount already paid  and has confused many users but the stimulus is not taxable you just cannot get it twice.

           

Check line 30.  The Recovery rebate credit is on 1040 line 30.  It either adds to your refund or reduced a tax due.

 

Before filing,  You can preview the 1040 or print the whole return

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

The IRS took my last stimulus check value from my tax return.  Surprisingly I thought these payments were free of any future payback.  

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?


@oldtrail  wrote:

The IRS took my last stimulus check value from my tax return.  Surprisingly I thought these payments were free of any future payback.  


You must have indicated that you did Not receive the 3rd stimulus payment.  The Recovery Rebate Credit would have been entered on your federal tax return.  The IRS records show that you were sent the 3rd stimulus payment so the Recovery Rebate Credit was removed from your tax return.

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

This happened to me. I thought we didn't have to pay it back, but wrong. 

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?


@oldtrail  wrote:

The IRS took my last stimulus check value from my tax return.  Surprisingly I thought these payments were free of any future payback.  


They are not.  But you cannot receive the same stimulus payment twice.  Answered in your other post.

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

Where can I find the criteria that the IRS uses to base the taking or not at?

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?


@oldtrail  wrote:

Where can I find the criteria that the IRS uses to base the taking or not at?


Go to your IRS tax account - https://www.irs.gov/payments/your-online-account

If your account shows that you received the 3rd stimulus payment of $1,400 then that is why the IRS removed the Recovery Rebate Credit of $1,400 because you already received the stimulus.

Court122
New Member

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

I tried to tell everyone I knew it was an Advance meaning they give it to you now then take it off the top at tax time no one wanted to listen to me now everyone I know is saying the same thing and their pissed 

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?


@Court122 wrote:

I tried to tell everyone I knew it was an Advance meaning they give it to you now then take it off the top at tax time no one wanted to listen to me now everyone I know is saying the same thing and their pissed 


The $1,400 stimulus payment you received in the March - May 2021 timeframe was most defiantly NOT an advance.  It was a government payment to you and is not entered on the 2021 tax return as taxable income.

 

However, you do have to indicate on the 2021 tax return if you received the 3rd stimulus or not.  If you indicate that you did NOT receive the stimulus payment then you are eligible for the Recovery Rebate Credit of $1,400 on your federal tax return Form 1040 as a credit.

Once you file the 2021 tax return the IRS reviews your entries.  If the IRS has records which show that the 3rd stimulus payment was sent to you they will remove the Recovery Rebate Credit from your tax return.

You cannot receive the same stimulus payment twice.

WHY DID YOU TAKE STIMULUS MONEY OUT OF MY FEDERAL REFUND?

I did NOT receive the 3rd stimulus check and it was still taken. I put that down on my line 30 and it still showed up. Why?

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