Yes, during the interview before you get to the stimulus payment questions TurboTax assumes you did not receive any stimulus payments and ... then once you answer the stimulus questions it will calculate the correct amount of Recovery Rebate Credit...
I wish they would have asked that much earlier. What that essentially does is makes you think you're getting a refund of a certain amount, only to watch it go down at the end. First, it's disappointing. Second, it's confusing, because it sure makes it look like you're being taxed on a stimulus check - when you enter the check amount and your refund amount goes down, what else are you supposed to think?
Also, it seems odd to make the assumption that people didn't receive a check. It seems like, by far, the normal situation would be that people did receive a check.
Just seems like TT could have handled the stimulus check situation much better.
Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above. (IRS FAQ Recovery Rebate Credit )
Exactly. And that's my point about the Federal Review page... The amount TT states I'm eligible for is the gross amount, not the net amount after AGI reduction is factored in. If my AGI was $500,000, I think the Federal Review page would say "Based on your AGI of $500,000, you're eligible for a first payment of $2,400 and a second payment of $1,200", when clearly that's not true.
Thanks for verifying I wasn't doing something wrong or misinterpreting something.
