Should the third stimulus amount be deducted twice?

[adwpayne]

The IRS deducted our third stimulus amount after TurboTax deducted it when calculating our refund. Can I fix that?

[DoninGA]

Was the stimulus payment entered on your filed tax return Form 1040 Line 30?  If it was then you received the Recovery Rebate Credit because you indicated you did not receive the third stimulus payment.

[adwpayne]

Apologies for the confusion. TurboTax listed on line 30 the difference between what we "should" have received ($4,500) and what we did receive ($995.35).  So the amount listed on line 30 should have been the total credit amount and transferred to the bottom line. However, the IRS deducted the $995.35 (again) from the refund amount on our return - from which that amount had already been deducted. So, essentially, the amount we received in March 2021 was deducted twice. I'm wondering if there's any way to fix that and recoup the nearly one thousand dollars. Hope that clarifies. Thanks!

[DoninGA]

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@adwpayne wrote:

Apologies for the confusion. TurboTax listed on line 30 the difference between what we "should" have received ($4,500) and what we did receive ($995.35).  So the amount listed on line 30 should have been the total credit amount and transferred to the bottom line. However, the IRS deducted the $995.35 (again) from the refund amount on our return - from which that amount had already been deducted. So, essentially, the amount we received in March 2021 was deducted twice. I'm wondering if there's any way to fix that and recoup the nearly one thousand dollars. Hope that clarifies. Thanks!

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What you received for the third stimulus was based on your 2020 tax return and your 2020 Adjusted Gross Income.  So what you received, $995.35, was based on the 2020 return.

The TurboTax program calculated what you should have received is based on your 2021 tax return and your 2021 Adjusted Gross Income.  The $4,500 is an odd number, if you are married and filing jointly with one dependent the amount should have been $4,200.

When asked if you received $4,500 and you answer No then you entered the amount of $995.35 you received, on your Form 1040 Line 30 there should have been $3,504.65 ($4,500 minus $995.35).

For tax year 2021 are you filing Married Filing Jointly?  And how many dependents?  What is your Adjusted Gross Income on the Form 1040 Line 11?

[adwpayne]

It may have been $4,200; I can't remember. Yes, we claimed a dependent. You have all the facts correct - line 30 shows 3,204 and the total refund amount should have been $3,632. However, we received $2636.36, which is a difference of $995.64. So it looks like the IRS deducted the $995 from my refund, but TurboTax already deducted it from the credit amount. Which is why i asked if it should be deducted twice.