You are correct. The stimulus payments are not taxable. If you have fully paid and reported Social Security and Medicare tax, you can disregard the W-2C alert.
To review, follow these steps to complete the Recovery Rebate Credit:
- Go to the search box and enter stimulus. Click the Jump to link.
- Answer Yes.
- At the next screen, Let's double-check the amount you received, answer No to edit the first-round and second-round amounts.
- If no stimulus amount was received, enter 0. An amount must be entered in each box. When finished, click Continue.
