You are not doing anything wrong. The stimulus payments are not taxable.
The stimulus payments you received last year and early this year were advanced payments on the 2020 Recovery Rebate Credit. TurboTax automatically gives you the Recovery Rebate Credit when you put in your information and your dependents' information.
Once you tell TurboTax the amount you received in stimulus payments, TurboTax reduces the Recovery Rebate Credit.
The credit should be reduced to zero if you received the proper stimulus payments.
It will never be reduced below zero.
You are not entitled to both the stimulus payments and the Recovery Rebate Credit.
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