@Kamcginty wrote:
your software asked the question, IRS says they are answering thousands of calls about the very sam thing The fault is in the software.how can everyone be wrong? Every other line on the form shows money we received from income, or stocks etc, why is this line a zero if you received money?? Backwards! And if we did not have to report it, as it states on the IRS website, and it was tax free, why did you not have the software define it that way?
You caused a lot of people hardship. Had that not been on there, I would be getting a refund, now I have to pay and I do not have that money!
If the question has not been asked and you received the stimulus payment then the amount of taxes owed would be exactly the same as being requested by the IRS.
The 3rd stimulus payment is not taxable income and is not entered on a tax return.
The question had to be asked since not everyone received the 3rd stimulus payment. For those individuals they would be eligible for the Recovery Rebate Credit. The credit is entered on Line 30 and would be either increase their refund or reduce the amount of taxes owed.
You received the stimulus but indicated you did not when asked so the Recovery Rebate Credit was incorrectly entered on your federal tax return. The IRS removed the credit and you now owe taxes.
