$2,800 "COVID Relief"

[donnyg5725]

Why does the $2,800 that I received for "COVID Relief" add $2,800 to my Federal tax amount due? When I go back and delete it, my amount due drops $2,800.

[LenaH]

Before you enter the amount of the third stimulus you received, TurboTax was calculating the Recovery Rebate Credit on your return. This added $2,800 credit to line 30 of your 1040, which decreased your amount due. Then, when you enter the amount you received, the Recovery Rebate Credit got eliminated because you already received what you were entitled to. 

[VolvoGirl]

It is not taxable and you aren't paying it back.  Your 2021 return starts out by assuming you didn't get any Stimulus payments so it gives you credit for the full amount and your refund was too high.  Then near the end you enter how much you actually got so it only gives you the difference if any.  So you don't get it again.

[jomama0808]

I had the same problem.  It seems like we never got the amount we were entitled to then because now it adds to what we owe for Federal. I'm confused obviously!