Is "Economic Impact Payment" a stimulus If so Is it Taxable Income?

[RaifH]

Economic Impact Payment is the official title for the stimulus payments. It is not taxable.

However, when filing your return you may be asked how much you received for the third Economic Impact Payment. This is just so that the system can ensure you got all you were entitled to. If you did not, it will add any missing stimulus money from the third payment to your 2021 tax return.

[the_walks]

When I answer the question about the amount of our economic impact payment that was on LETTER 6475, the amount of our refund was greatly reduced. The letter says the amount is not taxable income. Why did our refund decrease when I agreed with the amount we received?

Thank you for your help!

[xmasbaby0]

It just looked like your refund went down because the "refund monitor" was giving to you right away--- and then when you told the software you received it, the refund monitor had to change.   You cannot get it twice.

[AliciaP1]

TurboTax does not automatically populate the amount you received for the 3rd stimulus payment - as you noticed when you needed to input the amount.  Instead, it assumes your payment amount is $0 (since the box is empty until you populate it) and estimates the full amount included in your refund.  When you complete the box with the amount you already received, it is merely removing that amount from your refund to properly reflect that you already received.  It is not calculating it as taxable.