Confused about TurboTax calculating stimulus payments and credit

[ktferguson]

Got to the end of the Federal review, and it says "Let's double-check the amount you received".  Then it says:

Based on the tax info you entered and your combined adjusted gross income, you are eligible for the following stimulus payments:

First-round:  $3400

Second-round: $2400

Then I enter the amount we did receive, which was only $264 during the first-round.

This appeared to have no effect on giving us a credit.  If I say that we go the whole $5800...no change.  I only start to see our refund go up (which I assume means we're getting a credit) once I put i $198 or less for what we received. 

So, I'm confused, if TurboTax calculates that we were due that money, why am I not getting the credit for not receiving it?

[NCperson]

what is on Line 30? 

was your income BEFORE unemployment above or below $150,000 in 2020? 

here is what i think is occurring (and it's poor programming if you ask me)

You begin entering your information and TT assumes that you didn't receive ANY stimulus so your refund meter is inflated by the amount you actually received.  Then at the very end of the program in the review section, you enter what you actually received and the refund meter deflates to the correct number.

I would expect that from just before you entered that you received the $264 for the two stimulus payments to just afterwards, the refund meter only changed by that same $264. it would have been a better experience if the very first thing TT asks was the amount of your stimulus payments so the refund meter was deflated from the get go. 

so appears you are a family of 4 - 2 adults and 2 children and I suspect your income was very high in 2019 (which is why you only received $264) and in 2020, which is what really matters, was below the income threshold. 

[ktferguson]

You are correct about us being 2 adults and 2 children, and combined income is above $150000.  Haven't been unemployed at all. 

If I bump our actual stimulus down to $0, it moves our refund up by $200.  So, how I'm interpreting this is, based on our 2019 tax info, the government calculated we should get $264 (due to the kids, mostly).  If it were to be based on our actual 2020 info, we would "only" have supposed to have gotten $200 - that's why we get $200 if I move it to $0 received.  So, we got an extra $64 based on our 2019 numbers.

It's just weird that TurboTax says we should have received the $3400 and $2400, when that's not true.

[NCperson]

do not worry about prior years - it does not matter and doesn't work that way; it is a complicated subject and TT doesn't do any favors by saying you get $5800, which is what you are ELIGIBLE for before the income haircut. 

I suspect your 2020 income is $214,000 so your stimulus is limited .  (it's just math and I was able to back into it)

That is why it says you are due $200 based on 2020 numbers, but you are correct, since you received $264 originally, you can't be asked to return anything.  Line 30 is zero. 

if you really want to understand the gory details, fill out this worksheet; page  58

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[ktferguson]

Appreciate the responses!