Yes. TurboTax is calculating correctly. The stimulus payments to date have been advances for the rebate Economic Rebate credit on the 2020 tax returns based on 2018/19 returns. Since she did not receive the advanced payments she will claim eligibility on her 2020 tax return. The good news for you is you should have received the advanced payments based on your 2018/19 returns as well. While your 2020 return will not show her as a dependent, the overpayment to you is not required to be repaid.
Here is a link to IRS answers to Economic Rebate questions. See question J3.
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