Stimulus payment reflected in 2020 tax software?

Forum|Forum|5 years ago
November 9, 2020
2 replies
38 views

I thought I had read somewhere that the 2020 stimulus payment that was received, could possibly offset any taxes owed (somehow).

In looking at the new 2020 turbo tax software, i'm not seeing where that entry would go? Does the IRS send some sort of form that then gets entered in the software?

Thanks in advance

DoninGA

Level 15

The stimulus payment is not taxable income nor does it offset any taxes owed on the 2020 tax return.

Opus 17

Level 15

If you did not receive a stimulus payment during 2020 but you qualify according to your tax return, it will be added. Or if you already received the EIP but qualify for more (due to a drop in income or addition of a dependent) the new amount will be added. On the other hand, if you received a payment but now qualify for less (because of an increase in income) you do not have to repay the amount.

But if you received a payment previously and the amount was correct, it will have no effect on your tax return. It is not taxable, and it is not an offset of any kind.