Before you entered your third stimulus payment, TurboTax was most likely giving you the Recovery Rebate Credit.
Generally, if taxpayers did not get a third stimulus payment, and now they qualify due to a change in circumstance, then they would get a Recovery Rebate Credit. The Recovery Rebate Credit is calculated into your overall tax refund and will either increase a refund or decrease the amount of tax owed.
Once you entered your third stimulus payment, the credit got eliminated because you received all you were qualified for. This decreased your tax due. Stimulus payments were not considered income and are not taxable.
To access the stimulus section of the return, please complete the following:
- Open your return.
- Search stimulus with the magnifying glass tool at the top of the page.
- Click on the Jump to link.
- Enter the amount of stimulus you received on the page, Let's double-check the amount you received. Enter your total third round payment as it appears on your Letter 6475 from the IRS.
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