Yes, if you processed the return but are not due additional stimulus money, TurboTax would not know this and therefore it will have gone through to the IRS. No, the IRS would not have caught it at initial stages and will not reject it at this point. Your return is now in "audit" phase since the IRS already knows what you are/are not owed for stimulus.
If there is a $500 figure on your copy of your return, then when you went through the questionnaire there was something you either answered or did not answer that prompted the system to think you are still owed $500. This would have popped up on a screen telling you in large print that you are due a credit for stimulus. If you continued and processed the return but are not due additional stimulus money, now that the IRS has your return and it is most likely in "audit" phase, the IRS will adjust your refund to not include that $500s.
In the past few weeks, many folks in getting onto the IRS have stated that they "cannot find themselves" in the system - when previously they could see the status of their return. Then, poof, they're back. Whatever the IRS is doing to update their systems is causing this glitch - it is getting resolved on a somewhat daily basis. It is just going to be a really rough year for all with this process. Sorry for the frustration! I know it doesn't help, but you're truly not alone!
