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whit24jb
New Member

Are stimulus payments taxed? I entered the amount I received in stimulus payments for the 1st round and 2nd round, and my federal refund decreased. Is this an error?

It says I qualified for the stimulus credit (18), but my refund still decreased.
This year I am filing married separately and last year I filed married jointly, does this play a factor at all?
2 Replies
DavidD66
Expert Alumni

Are stimulus payments taxed? I entered the amount I received in stimulus payments for the 1st round and 2nd round, and my federal refund decreased. Is this an error?

No.  Stimulus payments are not taxable.  The reason your refund decreased is because prior to entering the amount of stimulus you received, your refund included the Recovery Rebate Credit (as if you had not received the stimulus payment.  Since you already received it, your refund decreased.   The "recovery rebate" tax credit and stimulus checks are two parts of the same thing. The way the law is written, both the first ($1,200) and second ($600) stimulus checks were simply advance payments of the credit.

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whit24jb
New Member

Are stimulus payments taxed? I entered the amount I received in stimulus payments for the 1st round and 2nd round, and my federal refund decreased. Is this an error?

Thanks!

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