topic Stimulus Payment impacts refund in Get your taxes done using TurboTax

Stimulus Payment impacts refund

id453 — Fri, 01 Jan 2021 12:03:19 GMT

I am using TT 2020 Premier Desktop to do an estimated return.
I came across a section that asks about the stimulus payment.
If you answer "yes" it wants you to enter an amount.

Example 2020 refund 100.00

I entered 12.00 which was the amount that was deposited into my account.

The next screen shows Great News "Your Credit" 1200.00

But my 2020 refund drops to 88.00

I thought there was no impact on refund or amount owed.

Am I missing something here?
Is this portion of TT not complete yet?
Is this amount what preparer has to pay back?

Re: Stimulus Payment impacts refund

NCperson — Fri, 01 Jan 2021 12:29:38 GMT

it's a little hard to follow your question with the screen shot provided, but let me take a shot at it.

Turbo Tax begins presuming you did NOT receive your stimulus, so the meter (and Line 30 of Form 1040) assumes a $1200 additional refund due. Once you fill out the Stimulus section, it will adjust both Line 30 and the Meter. Since you put in your stimulus received to date as $12.00, it will reduce the refund by the same amount.

In other words, when you begin your return and ONLY complete the MyInfo section, the meter will immediately show a $1200 refund - because it knows you were due that much in stimulus and it is waiting for you to enter how much stimulus you actually received, which will reduce that estimated refund.

is that the issue?

Re: Stimulus Payment impacts refund

id453 — Fri, 01 Jan 2021 13:05:33 GMT

I think I got what you are saying.

The 12.00 is the actual amount I received. (FYI)

I just looked at the 1040-SR lines.

Now I understand it. I think.

Thanks