I'm working on 2020 taxes with Turbo Tax Desktop. The 1st and 2nd 2020 Stimulus Checks from the Federal Gov't are as stated in many places, not taxed. But when I enter $2400 in the field for the 1st round check we received, doing so reduces my refund amount from $3383 down to $983. If I enter $1200 in the field for the 2nd Stimulus Check, Turbo Tax tells me I now owe $217. Have I missed some entry to prevent this from happening?
thanks for any help,
You didn't miss anything. TurboTax started off assuming that you did not receive any stimulus checks, so it gave you the stimulus payments as a credit on your tax return. After you told it that you did receive the checks, it removed those credits.
If you received the stimulus payments, you do NOT enter the amount you received. The program specifically asks you if you received the correct amounts and all you need to do is answer YES and Continue.
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