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The stimulus payments are not taxable. However, if you had not put in your stimulus payments before, your return was calculating the Recovery Rebate Credit and that was generating a higher refund.
The amount of the Rebate Recovery Credit is based upon your actual 2020 income tax return you file. Therefore, if you meet the criteria for the credit, you will receive it when you prepare your 2020 income tax return. The credit is intended to give those who should have received a stimulus payment but never did a tax credit on their tax returns. Any excess credit is then refunded to you if there is an overpayment on your tax return.
Please see the attached link for more information on who can claim the credit.
Recovery Rebate Credit eligibility
After you enter your stimulus payments received or not received, you should see a screen similar to the one below if you are entitled to the credit. If you are not entitled to the credit, you will not see anything related to the Recovery Rebate Credit as you already received your stimulus payments.
