Recovery rebate question

Forum|Forum|4 years ago
February 20, 2022
1 reply
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First I got a letter from the IRS showing my economic impact payment. Second I input all my taxes into turbo tax and was doing the review and it came up with the section where it said I needed to enter my recovery rebate from the prior year. Is this the economic impact payment... because when I entered the 2100 suddenly my federal refund increased by about that much and I'm confused as to why?

TurboTax Home & Biz Windows

FangxiaL

Level 10

Yes, the economic impact payment is the 3rd stimulus payment, also call Recovery Rebate Credit on our tax return Form 1040.

If you filed a joint return with one dependent, most likely you received $4,200. The IRS Letter 6475 reports 1/2 of it to you and the other 1/2 to your spouse. So if you have received $4,200, enter $4,200 instead of $2,100 (if still filing jointly).

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confusedrfAuthor

Level 6

Sorry if this is a duplicate reply. I pop back in to see if I had any more answers. As I had mentioned above whether it's $2,100 or 4200 I will check that out but my real question is why after entering all of my tax info and running the review it showed up as an error and said enter your recovery rebate and when I did enter 2100 my refuse suddenly grew by about that much ...why would that happen?

JamesG1

Level 15

You asked: "why after entering all of my tax info and running the review it showed up as an error".

The Recovery Rebate Credit questions show up late in the software because TurboTax wants to make sure all of your information has been entered.

The computation of the Recovery Rebate Credit is a two-step process. You are able to observe what is happening at each step on line 30 of your Federal 1040.

Early in the program, TurboTax software computes whether you qualify for the $1,400 third stimulus check and gives you immediate credit for the third stimulus check.

You are able to view this Recovery Rebate Credit on line 30 of the Federal 1040 under Tax Tools / Tools / View Tax Summary / Preview my 1040.

You enter the third stimulus check actually received at the screen Let's double-check the amount you received.

Then the Recovery Rebate Credit on line 30 is reduced by the amount of the checks received. You may also view this under Tax Tools / Tools / View Tax Summary / Preview my 1040.

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