In reviewing "how are taxes effected by covid" , it states that these payments are not considered income and will not reduce your refund.
Why does my refund go down (get deducted) when the Covid relief amounts are entered?
It deducts the full amount of the relief payments received. In reading the article below it does not seem like this should be occurring.
Reference
https://ttlc.intuit.com/community/tax-topics/help/how-are-my-taxes-affected-by-covid-19/00/1330402/m...
The Economic Impact Payments (both the first and second) are not considered income, and therefore are not taxable. They won’t reduce your refund or increase what you owe when you file your taxes this year. They also won’t affect your eligibility for any federal government assistance or benefits.
