You can remove the Recovery Rebate Credit (COVID stimulus) by entering into TurboTax the amounts you received from the first and second stimulus payments. If you received the correct amount of stimulus, then nothing more will be added to your tax return. If you received less than you were entitled to, then the extra amount will be added on line 30 of Form 1040.
- Sign into your account and continue from where you left off
- Click on Federal in the left-hand column, then on Federal Review on the top of the screen
- On the next page titled Let's make sure you got the right stimulus amount, click on Continue
- Follow the interview
- TurboTax will determine whether you are entitled to any additional stimulus
- Any stimulus amount remaining due to you will show as a credit on line 30 of your form 1040.
The stimulus payments were advanced payments for 2020. Since the IRS did not have 2020 information when it sent out payments, the Service used 2018 and 2019 tax information with the understanding that any missing payments would be added to your 2020 tax return.