Why did Turbotax put $1200 on my 2020 Line 30?

[sherlynn02]

no, its the case is we received the checks, it looks like we are trying to claim them as we did not receive them. like we lied to get more stimulus$. when i talked to someone last week he said no dont call the irs. What kind of advice is that????? No wonder no refund date on WMR. No direct deposit for me now. It could take months...

[chiccfal]

I need to pay 90$ I can't understand why -.-, and I can't fix it

[chiccfal]

so for turbotax we need just to wait 

[sherlynn02]

when i get through i will definetly post the conversation. Give me a couple of days you have to sit on hold for an hour or more.   I am hoping it has nothing to do with 3rd stimulus check. i have a date mine was mailed a couple of days ago. but ya, i will repost. be patient.  They may know turbo tax had a glitch. I am going to make sure i tell them- irs that is

[sherlynn02]

I did read about refund delays and turbo tax- check line 30. I beleive the irs knows it was turbo tax, also somebody said you don't have to file an amendment unless irs sends a letter. usually they fix it and send it back adjusted.  Hope so, i will get ahold of them. They will know it wasn't just me. probably alot of people have this problem. glad you posted, turbo wants us to pay them to fix it. theres the scam.

[LenaH]

Per the IRS, if an error was made on your tax return in regards to the Recovery Rebate Credit, do not file an amended tax return. If a mistake was made, the IRS will calculate the correct amount of the Recovery Rebate Credit, make the correction to your tax return and continue processing your return. You can confirm this at the IRS page - 2020 Recovery Rebate Credit — Topic G: Correcting issues after the 2020 tax return is filed.

As stated above by DMarkM1, this will not cause problems with the IRS as it is a very common occurrence due to the timing of payments (for example: some individuals filed their returns before they got their second stimulus payment) . This type of error on your return will not prevent you from receiving the third economic stimulus payment. 

Those eligible will automatically receive an Economic Impact Payment of up to $1,400 for individuals or $2,800 for married couples, plus $1,400 for each dependent. Unlike EIP1 and EIP2, families will get a payment for all their dependents claimed on a tax return, not just their qualifying children under 17. Normally, a taxpayer will qualify for the full amount if they have an adjusted gross income of up to $75,000 for singles and married persons filing a separate return, up to $112,500 for heads of household and up to $150,000 for married couples filing joint returns and surviving spouses. Payment amounts are reduced for filers with incomes above those levels.

Generally, if you are a U.S. citizen or U.S. resident alien, you are eligible for the full amount of the third Economic Impact Payment if you (and your spouse if filing a joint return) are not a dependent of another taxpayer and have a valid Social Security number (see exception when married filing jointly) and your adjusted gross income (AGI) on their tax return does not exceed:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household or
• $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

Most eligible people will get the third Economic Impact Payment automatically and won't need to take additional action. The IRS will use available information to determine eligibility and issue the third payment to eligible people who:

• Filed a 2020 tax return.
• Filed a 2019 tax return if the 2020 return has not been submitted or processed yet.
• Did not file a 2020 or 2019 tax return but registered for the first Economic Impact Payment using the special Non-Filers portal last year.

The IRS will be issuing the third round of payments throughout 2021. If you didn't receive one yet, it doesn't mean you won't. Keep in mind that that the third Economic Impact Payment is based on your 2020 tax return or if your 2020 tax return is not processed when determining your eligibility, your 2019 tax return or information you entered on the Non-Filers tool on IRS.gov last year. If you did not file a 2020 or 2019 return but were an eligible federal benefit recipient, your payment is based on you being an eligible federal benefit recipient.

IRS will also issue additional payments to those who received a third payment based on a 2019 tax return and who are eligible for an additional amount based on their 2020 tax return.

Questions and Answers about the Third Economic Impact Payment — Topic G: Receiving My Payment

@sherlynn02

@chiccfal

[sherlynn02]

i just read a whole different story.  that they are taking stim 2 back out of taxes, now i am just curious to see what happens. someone said line 30 could not be 0. And no wonder its taking so long to get taxes back. don't be in a hurry to amend unless they send you a letter. Wow, its kind of crazy... maybe turbo isnt doing it wrong, but if we have to payback someone should be telling us that. Also turbo cards are super easy to use for direct deposit think numbers get screwed up or accounts are closed. something with the turbo visa and h&r block, it was all messed up last time. well i dont think it was really fixed. i am curious to get some more answers but i am not alone. Remember don't amend unless they send you a letter- that i read on irs website.

[sherlynn02]

Dont jump and pay that, i am sure they don't mind filing unnecessary papers for you and taking your money. If you are suppose to get money you will get it.  If irs has question for you they will mail you a letter. I am sure we all would have received mail about this if we need to provide more information. Once turbo tax files its out of their hands- irs has it. i am in search of info, i will get it even if i have to find a professional tax person.....

[VolvoGirl]

You are not paying tax on them and it is not deducting it from your refund or increasing the tax due.  Turbo Tax started out by assuming you didn't get it and  giving you credit for the whole amount so your refund was too high to begin with.  Then when you entered what you already got the starting refund was reduced or the tax due increased to your real actual refund.  Otherwise you would be getting the Stimulus amount again on your tax return.

Look at your return.  The Stimulus payments do not show up anywhere as taxable income so you are not being taxed on it.  And it's not being subtracted anywhere.

A common adjustment is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payment or got the second one after you filed or reported the wrong amounts or entered the wrong amounts in the 2 boxes.  If you entered the total you got for both rounds in the same box it would think you didn't get the other one.

[JotikaT2]

They are not taking the second stimulus payments out of your tax return.  When you prepared your tax returns, you were asked how much you received for the first and second stimulus payments.  Your input in these fields was used to determine if you were eligible for the Recovery Rebate Credit.

If you met the criteria for the credit, you received it when you prepared your 2020 income tax return.  The credit is intended to give those who should have received a stimulus payment but never did a tax credit on their tax returns.  Any excess credit is then refunded to you if there is an overpayment on your tax return.

Please see the attached link for more information on who can claim the credit.

Recovery Rebate Credit eligibility

If you indicated you did not receive either of the stimulus payments but you actually did, the IRS is pulling these returns aside to reconcile the credit.  They will issue notices directly to you if they determine the returns were not completed correctly.  You do not need to amend your return.

Correcting Recovery Rebate Credits on returns already filed

@sherlynn02

[sherlynn02]

and theres a tax expert with legit answers, not trying to get $ from us. We are broke, well i am broke and waiting on stimulus and taxes or taxes and stimulus. either way when i get some $$ i am using it to get back and worth to work for a month because thats about how long it takes to get paid when you start a job that pays bi-weekly. Then depends on start date also. I don't know how they think when your flat broke you can get back and forth for free? door dash, shipt... starting to sound good to me. Thank you Lena the tax expert. 

[Post-humanApathy]

Then can someone please explain to me why line 30 has $1,800 when I selected that yes, I did receive the EIPs and put in the amount for each one in TWO SEPARATE boxes, yet even after me providing the CORRECT INFORMATION REGARDING THE EIPs TURBOTAX'S SOFTWARE CHANGED IT FROM $0 TO $1,800 ($1,200 + $600).

I supplied accurate information. The SOFTWARE had a bug in the coding and calculated it incorrectly.

All you TT employees can do you best to try and cover the fact that the program developers **bleep**ed up the coding but soon, the truth WILL be exposed and when it is SOMEONE will take action.

[DawnC]

Was your refund amount the same as when you filed?   When you hit the ''Transmit Returns'' button was the $1800 on Line 30?   @Post-humanApathy

[Post-humanApathy]

@DawnC  I assume you're asking me if before I clicked "Transmit Return" I checked to see if line 30 had $1,800 on it. If that's the case, I don't know. I assumed that when I provided the information about the EIPs and input the amount of both EIPs that the software would calculate the information accordingly. Fact is that after nearly a month and a half of seeing "Your return is still being processed." I started talking to friends and family about this issue when my mother informed me the her tax return was in 'corrections and errors'. I asked her why and she said that the IRS agent informed her that line 30 had inaccurate information. She asked what it was and they explained it to her. She told them that when she filed she was prompted to provide information about the EIPs, she told the agent that she checked "Yes" to receiving the EIPs and provided the total for each EIP in the two provided boxes. Although it shouldn't have ADDED the totaled amount to her refund but rather simply be zeroed out, the TT software had totaled the two payment amounts and apparently applied that to line 30.

I started doing some research and after about 6 hours of constant reading and comparing my situation to my mothers and tens of thousands of others, it's PRETTY CLEAR that the customers aren't at fault here. We didn't provide inaccurate information, we answered the questions as they came step by step. It wasn't until I downloaded a PDF document of my 2020 returns that I was able to look over the information submitted and confirmed that $1,800 is, in fact, submitted on line 30. Once again, I answered the questions accurately, the software calculated and submitted this information incorrectly.

[DawnC]

You should always download and review your tax returns before filing.  If there is a problem, it is always better to deal with it before filing rather than afterward.  If an error in TurboTax causes you to incur any interest or penalty charges, you can file a claim through the TurboTax 100% Accurate Calculation Guarantee.   @Post-humanApathy