My wife & I filed separately on our 2020 tax return in 2021 with each of us claiming 2 of our 4 children. Each of us received a 3rd stimulus check in early 2021 in the amount of $4,200 (1 parent, 2 children). Using the turbo tax software for the 2021 taxes in 2022, we are still filing separately, but this year I am claiming all 4 kids & my wife is claiming none of the children. The results in the software calculating a rebate recovery of $2800 for me since the 3rd stimulus I received was based on my 2020 tax filing status & dependents, (i.e., $4200) but my status & dependents on the 2021 return calculates a $7000 stimulus based on myself & 4 dependents resulting in the $2800 rebate. For my wife, however, she received a stimulus of $4200 in 2021 based on her 2020 filing, her 2021 filing with 0 dependents would calculate to only a $1400 stimulus, but the software indicates overpayments are not recaptured. Is this correct? FYI, even the free filing options on the IRS site calculates the same results.
