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Returning Member
posted Mar 3, 2021 11:46:04 AM

Recovery Rebate Credit 2020 return

We did not receive the second stimulus $. When I say no did not receive the $ 1200 it adds it to my taxes owed for 2020. Does anyone know why? 

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4 Replies
Employee Tax Expert
Mar 3, 2021 12:10:02 PM

It should not.  I recommend you review your input.  There are two boxes that need information to be entered in order for the return to be calculated correctly.

 

In the Federal section, select the Federal Review interview section at the top of the screen.

 

This will take you to the input section for the Recovery Rebate credit.

 

Be sure to indicate the actual amount of each stimulus payment you received on the page that asks if you received a stimulus payment.  There will be two boxes and both need to be completed. 

 

Since you did not receive the second stimulus payment, make sure you enter $0 in the second box.

 

 

Please see the attached link for more information on who can claim the credit.

 

Recovery Rebate Credit eligibility

Level 15
Mar 3, 2021 12:18:32 PM

I assume you got the first 2,400?  Did you enter the first 2,400 in the first box and enter a 0 in the second box?

 

What you may be seeing is that Turbo Tax started out assuming you didn't get any Stimulus payments so it gave you the full 3,600 credit.  Then you entered you got the first 2,400 and the credit was reduced to 1,200 on 1040 line 30.  That reduced the initial refund you saw or increased the tax due.  Because you already got some.

Returning Member
Mar 3, 2021 12:50:43 PM

yes, I entered received $ 2400 and 0 for the stimulus in feb of 2021. When I did this, it increased my taxes owed, in turbo tax. 

Level 15
Mar 3, 2021 12:58:13 PM

Yes I think my post above explains why.  Your original tax due was too low because it thought you didn't get the first 2,400 so it gave it to you.  Then at the end you entered you already got it.  And the tax due changed back to your normal tax due.