when I enter that I received a stimulus for 2021 check Turbo Tax increases my tax liability. Changes from a refund to owing $
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Before you entered the amount of the 3rd stimulus payment you received, the TurboTax program had entered on your federal tax return Form 1040 Line 30 the amount of the Recovery Rebate Credit that you were eligible to receive. After you entered the amount of the 3rd stimulus payment that you did receive, the credit was removed from Line 30 since you cannot receive the same stimulus payment twice.
should I have entered zero?
@salliz2 wrote:
should I have entered zero?
If you enter 0 you would be indicating that you did NOT receive the 3rd stimulus. Then when you file your tax return the IRS would have records showing that the 3rd stimulus payment was sent to you so the IRS would remove the Recovery Rebate Credit entered on Form 1040 Line 30. Thereby delaying any federal tax refund you were eligible to receive by several weeks if not longer.
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