Why was money taken back for the stimulus checks? No one else i know had theirs taken back. Did i miss something?

[elchor1]

As the title says, i filed for taxes and when i said i received the last 2 stimulus checks, it took all of it off of my returns... why is that? None of my friends or family had theirs taken. I dont understand...

[CatinaT1]

Before you enter the amount of the stimulus payments at the screen Did you get a stimulus payment?, you have been given the full Rebate Recovery Credit (the equivalent of the two stimulus payments) as part of your refund.   This can be found on line 30 of the 2020 Federal tax return.  At this point, this is an 'incomplete' Rebate Recovery Credit. 

The refund monitor on your screen displays a refund amount that includes the stimulus money as part of your 2020 refund.   When you enter the amount of stimulus you received, the refund monitor adjusts to account for this. 

  

See this TurboTax Help. 

  

This TurboTax Help states that the Economic Impact Payments (both the first and second) are not considered income, and therefore are not taxable. 

[elchor1]

it just asked me if i got the first two stimulus packages in a yes or no format, i checked yes, since i did. And the credit deal, does that mean the “return so far” deal is weong because it doesnt account for it?

[WendyN2]

If you already received the stimulus payments one and two then you are not due a credit. You've already received the stimulus payments for last year. They are called "credits" because that is what they are - to those who did not receive first, second, or either payment in 2020 (second one for beginning of Jan, 2021 for 2020).

[elchor1]

So my friends who didnt pay back through tax returns will have to pay it back in another form? Cause they received the stimulus and payed nothing back and got their full tax return

[gloriah5200]

It is very hard to compare two returns without seeing either of them.

TurboTax software adds the max recovery rebate credit to your return until you answer the questions on it, then it adjusts the recovery rebate credit amount by the amounts you enter that you already received.

You are not "paying it back", but instead... getting the correct amount since you already received what you are entitled to by the software.

The first two stimulus payments were based on information from your 2019 or 2018 tax filings.

But, the amount you were paid will be reconciled on this year’s tax return based on your 2020 situation.

If you didn't receive the correct amount of first or second stimulus payments, you can claim the Recovery Rebate Credit when you file your 2020 taxes and it will provide the same amount of payment as they would have.

TurboTax will guide you through this to make sure you get every dollar you deserve.

Please follow this link for additional information:

How does the Recovery Rebate Credit Work

[VolvoGirl]

@elchor1   You are not paying it back.

You are not paying tax on them and they are not deducted from your refund. 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. And they are not being subtracted anywhere on your return either.