2020 Recovery Rebate Credit Error

[lindze75]

TT said I was eligible for a first payment of $1847 and second payment of $747.  I recieved less than that for each payment (and verified in my IRS account that I entered my two payments of 1217 and 550 correctly).  I then was given a credit of $827 by TTax which I later had to Repay.  Where did the $1847 and $747 TTax said I was eligible come from based on my AGI? I entered the info correctly, why did this calculation occur?  Now that I'm filing for 2021 TTax is importing the incorrect info on that and on total taxes owed/paid.  How do I fix it?

[AliciaP1]

The Recovery Rebate Credit only applies to the 3rd stimulus payment received in Spring 2021.  There was no Recovery Rebate Credit prior to 2021.

The information you enter for the Recovery Rebate Credit should report whether or not you received the $1,400 per household member that was the 3rd stimulus payment.

[lindze75]

The 2020 Turbotax asks specifically for the first two economic stimulus payments and reports it in Line 30 for Recovery Rebate Credit.  

"Enter your total first-round payment (issued April-Nov '20):

Enter your total second-round payment (issued Dec '20 - Feb '21"  

This clearly was not communicated to be for the third payment and it is the specific TTax section that indicated my eligibility for the Credit that I had to pay back.  How is this a user error?

Not sure if your comment is what you think I should enter for 2021?  For 2021, my question is not regarding the 3rd payment, but regarding how to update the 2020 data that was imported.  TTax doesn't show that I paid the additional taxes I was billed for later.

[xmasbaby0]

Federal tax you paid last year is not entered anywhere on your 2021 tax return.   It is not deductible.

[lindze75]

Thanks for the reply.  So it sounds like I don't need to care that the imported data from 2020 into the 2021 return regarding my eligibility for the Recovery Rebate or the total tax amount paid is not correct.  Then it's really just imported to do the comparison in "Tools" -> "Tax History" which will be wrong but won't impact my 2021 filing?

[xmasbaby0]

No it will have no effect on your 2021 tax due or refund.

[AliciaP1]

That is correct!

@lindze75

[lindze75]

Great, thank you!  Glad I can proceed with 2021!  Any insight to offer on what went wrong with 2020 TTax in computing the rebate based on stimulus payments?  I already paid the IRS, but I still don't understand why TTax reported eligibility for a credit of $827 when I provided the info I was directed to provide?  I even went back to see if there was an update to the 2020 software and tried to reenter the info but got the same result.